FxWirePro: Gold downside capped by 7-day EMA, good to buy on dips

Ichimoku Analysis (Daily chart)

Tenken-Sen- $1724.50

Kijun-Sen- $1713.30

Gold recovered more than $25 after hitting a low of $1726.62. The weak US dollar and fear of the second round of coronavirus is supporting the yellow metal at lower levels. It hits an intraday high of $1751 and is currently trading around $1749.90.

US Dollar Index – Bearish (Positive for Gold)

S&P500- Strong (negative for gold)

US Bond yield- slightly bearish (positive for gold)

Technicals:

The yellow metal took support near 7-day EMA and jumped sharply from that level. The overall trend is still bullish as long as $1700 holds.  On the flip side, the near term significant support is around $1725 and any breach below will drag the gold down till $1710/$1690/$1678/$1660.

The immediate resistance is around $1747, any indicative break beyond targets $1764. Significant trend continuation can be seen only if it surges past $1765, a jump till $1800 likely.

It is good to buy on dips at around $1735-36 SL around $1725 for the TP of $1799.