Ichimoku Analysis (Daily Chart)
Tenken-Sen- $1870
Kijun-Sen- $1844
Gold lost nearly $50 from an all-time high of $1981 on profit booking. The commodity jumped $45 yesterday after US republicans to include onetime payment of $1200 for individuals and $2400 for families. US dollar index hits 22-month low amid strong durable goods order. It came at 7.3% mom better than the forecast of 6.5% mom. The total number of cases in the USA nearing 4.5 million and deaths nearing 1.5 million.
US Dollar Index – bearish (positive for yellow metal)
S&P500- bullish (positive for gold)
US Bond yield- sideways (neutral for gold)
Technical:
The yellow metal is in the overbought zone and minor profit booking till $1900 is possible. The near term resistance is around $2000, the violation above will take the pair to the next level till $2025/$2040.
The immediate support is around $1930, any indicative break beneath targets $1900/$1859.
It is good to buy on dips at around $1900 with SL around $1860 for the TP at $1980.
