Ichimoku Analysis (Daily Chart)
Tenken-Sen- $1567
Kijun-Sen- $1542
Gold is consolidating after hitting a high of $1588 yesterday. China has said that almost 106 people have died due to the coronavirus and the number of cases infected doubled to 4515 vs 2835 a day earlier.US markets tumbled sharply, especially travel-related, energy and semi-conductor shares as coronavirus spread lot of Asian countries.
US 10 year bond yield continues to trade lower for 6th consecutive days, lost 14% from temporary top 1.90. The spread between US 10- year and 2 years has narrowed to 18 bps from 35.7 bps.
The near term resistance is around $1583, any break over targets $1600/$1611. On the flip side, the immediate support is at $1560 and any break will drag the gold down till $1545/$1536 likely. Extreme bearishness only below $1530.
It is good to buy on dips around $1570-71 with SL $1560 for the TP of $1600/$1611.
