FxWirePro: Gold trades higher on declining bond yield, good to buy on dips

Ichimoku Analysis (4 Hour chart)

Tenken-Sen- $1571.

Kijun-Sen- $1570.27

Gold has recovered sharply on the fast-spreading of coronavirus across various countries. The death toll of and confirmed cases rose to 7711. Most of the death has been from Wuhan and province of Hubei.

US Fed has kept its rates unchanged at 1.50%-1.75% as widely expected and said in the press conference that the current monetary stance is "appropriate". The central bank also added about coronavirus that it is "very carefully monitoring the situation", but "too early" to assess the impact.

US 10 year bond yield declined sharply and lost more than 6% yesterday. The spread between US 10- year and 2 years has narrowed to 16.8 bps from 35.7 bps.

The near term resistance is around $1583, any break over targets $1588/$1600. On the flip side, the immediate support is at $1565 and any break will drag the gold underneath till $1555/$1545 likely. Extreme bearishness only under $1530.

It is good to buy on dips around $1565-67 with SL $1555 for the TP of $1600/$1611.