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FxWirePro: Gold Daily Outlook

Ichimoku analysis (8-hour)

 

Tenken-Sen- $1579

 

Kijun-Sen- $1570

 

Gold continues to trade higher for 4th consecutive days as demand for safe-haven assets increased due to coronavirus. The total number of people died has increased to 1770 and the number of infected cases crossed 70000.

 

The US 10 year bond yield has halted its 1 -week of the bullish trend and declined more than6% from recent high 1.64%. The spread between US 10- year and 2 years has narrowed to 15 bps from 27 bps.

 

The near term resistance is around $1592, any break over targets $1600/$1611. On the flip side, the immediate support is at $1574 and any break will drag the gold underneath till $1564/$1555 likely. Extreme bearishness only under $1535.

 

It is good to buy on dips around $1575-76 with SL around $1560 for the TP of $1592/$1600.

 

 

 

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