Ichimoku Analysis (Daily chart)
Tenken-Sen- $1575
Kijun-Sen- $1547
Gold has shown a massive jump of more than $80 yesterday on hopes of stimulus from the US government. US stocks surged more than 10% with Dow Jones 20704 (11.37%) and S&P500 2447 (9%). The jump in the market came as US congress said that they are close to deal. It is currently trading around $1612. DXY has shown a decline of more than 100 pips from a high of 102.99.
The total number of people infected due to coronavirus increased to 378547 and the death toll rose in Italy increased to 6077. US 10-year yield recovered more than 30% from low of 0.69%, the spread between US 10-year and 2-year has narrowed to 48 bps from 70 bps.
Technically, near term support is around $1578 and any violation below will drag the gold down till $1545/$1528.
On the higher side, immediate resistance is around $1625 and indicative break above will take the gold till $1640/$1660.
It is good to buy on dips around $1575-80 with SL around $1550 for the TP of $1700.
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