Ichimoku Analysis (4-hour chart)
Tenken-Sen- $1719.30
Kijun-Sen- $1714.30
Gold has broken trend line resistance $1717 and hits a high of $1736 after a long consolidation. The yellow metal bounced despite strong US dollar and surging stock market. The global economy is getting deteriorating on account of coronavirus and demand for Safe-haven will increase in the short term.
The number of people who filed for unemployment benefits rose to 3 million last week compared to a forecast of 2.5 million cases.
US Dollar index – slightly bullish (negative for Gold)
S&P500-Slightly – slightly strong (negative for gold)
US Bond yield- bearish (positive for gold)
The yellow metal is on the higher side and holding well above $1700. On the flip side, the near term significant support is around $1698 (trend line support) and any breach below will drag the gold down till $1680/$1660/$1640.
The immediate resistance is around $1739, any indicative break beyond targets $1747. Significant trend continuation can be seen only if it surges past that level, a jump till $1770/$1800 likely.
It is good to buy on dips at around $1712-15 SL around $1700 for the TP of $1770.
