Ichimoku Analysis (Daily chart)
Tenken-Sen- $1737.28
Kijun-Sen- $1713
Gold lost more than $25 from yesterday's high of $1735.77 on a strong global stock market. The market risk appetite gets stronger in hopes of the COVID-19 vaccine. The yellow metal was one of the best performers this year and jumped nearly 15% on account of US-China trade tension and Coronavirus. It hits an intraday low of $1707 and is currently trading around $1707.40.
US Dollar Index – Slightly bearish (positive for Gold)
S&P500- Bullish (Negative for gold)
US Bond yield- slightly bullish (negative for gold)
Technicals:
The yellow metal has broken significant support at $1716 (21- day MA) and closed below that level. This confirms minor weakness, a dip till $1700/$1680 likely.
The immediate resistance is around $1726, any indicative break beyond targets $1740/$1755/$1765. Significant trend continuation can be seen only if it surges past $1765, a jump till $1800 likely.
It is good to sell on rallies around $1714-15 SL around $1726 for the TP at $1678.
