Ichimoku Analysis (Daily Chart)
Tenken-Sen- $1493.18
Kijun-Sen- $1482.96
Gold continues to trade higher for the past 5 days, its longest in about 6 months. It hits 3- month high at $1524 and is currently trading around $1523.06. The yellow metal was one of the best performers this month, surged more than 4.5% on the weak US dollar. US dollar index has lost more than 100 pips after a jump till 97.82. Any break below 96.50 confirms bearish continuation and a dip till 96 is possible.
US 10- year bond yield declined more than 3% after hitting a high of 1.95%. It has formed a minor bottom around 1.428% and jumped more than 35%. The spread between US 10 and 2-year has widened to 31.8 bps from 12 bps one month earlier.
The pair is trading slightly above major resistance $1516 and this confirms bullish continuation, a jump till $1535 likely.
On the flip side, nearby significant support is around $1510 (5- day MA) and any violation underneath will drag the gold down till $1499/$1481.
It is good to buy on dips around $1512-14 with SL $1500 for the TP of $1555
