Ichimoku Analysis (1-Hour chart)
Tenken-Sen- $1671.75
Kijun-Sen- $1680
Gold is trading in a narrow range between $1657 and $1685 yesterday. The outbreak of coronavirus and rate cut by major central banks will support yellow metal at lower levels. It hits an intraday low of $1661.97 and is currently trading around $1668.56.
US 10-year yield has shown a nice recovery of more than 60% from an all-time low of 0.36%. The spread between 10 and 2-year has narrowed to 16 bps from 35 bps.
On the flip side, near-term support is around $1660 (100-H EMA) and any violation below will drag the gold down till $1655/$1648/$1640.
The immediate resistance is at $1685 and any indicative break above $1703/$1720.
It is good to sell on rallies around $1673-75 with SL around $1685 for the TP of $1626.
