Ichimoku Analysis (Daily chart)
Tenken-Sen- $1626
Kijun-Sen- $1618
Gold is consolidating after a massive jump of more than $50 after US Fed cuts rates by 50 bps. US stocks surged sharply with Dow Jones 27090 (4.53%) and S&P500 3130 (4.22%). The victory of former Vice President Joe Biden who has swept the South with around 1300 delegates.
US private sector has added 183000 jobs in Feb compared to a forecast of 170000 and ISM services came at 57.3 much better than the estimate of 54.9.
US 10-year has recovered more than 15% after declining below 1%. The spread between US 10 and 2- year yield has widened slightly to 35 bps from 24 bps.
Technically, it is facing strong support at $1598 (21- day MA) and any close below targets $1560/$1535.
The immediate resistance is around $1660, an indicative break above will take the yellow metal till $1685/$1700.
It is good to buy on dips around $1570-75 with SL around $1550 for the TP of $1685.
