Ichimoku Analysis (8-Hour chart)
Tenken-Sen- $1611
Kijun-Sen- $1627
Gold has halted its 5 days of losing streak and shown a minor jump of $35 from low of $1551. The massive sell-off in yellow metal came despite a huge dip in the stock market. The strong US dollar and a minor surge in US bond yield are putting pressure on gold at higher levels.
Fed has injected more than $1.5 trillion in the financial system due to the outbreak of coronavirus. The restarting of QE by the US central bank will support the demand for gold at lower levels.
Technically, near term support is around $1550 and any violation below targets $1536/$1500.
On the higher side, immediate resistance is around $1611 and indicative break above will take the gold to the next level till $1627/$1660.
It is good to buy on dips around $1560-65 with SL around $1550 for the TP of $1610.
