FxWirePro: Gold declines on profit booking and surging equities, good to buy on dips

Ichimoku Analysis (Daily Chart)

Tenken-Sen- $1624

Kijun-Sen- $1577

 Gold futures have declined more than $70 after hitting year high at $1742. The decline was mainly due to profit booking and a nice recovery in the equity market. US markets especially S&P500 surged more than 25% from low of 2181. 

US 10-year yield is showing a minor jump of more than 45% from low of 0.554% and spread between US-2 and 10-year widened to 45 bps from 35 bps. 

The total number of people infected due to coronavirus rose to 1431 with the U.S is in the top with 400540 and major European economies like Spain, Italy, Germany, and France crossed 1 lakh.

On the flip side, near term support is at $1575 and violation beneath will drag the yellow metal down till $1560/$1518.

The immediate resistance is around $1700, any indicative break beyond targets $1725/$1740.

It is good to buy on dips around $1660 with SL around $1630 for the TP of $1740.