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Ichimoku Analysis (4-hour chart)
Gold is trading higher for 2nd consecutive days after forming a bottom at $1562. The major factors affecting the yellow metal are
Global stock market- US markets is consolidating after hitting a fresh all-time high with Dow Jones and S&P500 closed at 29423 (0.40% lower) and 3373 (0.16% lower) respectively. Asian markets especially Hangseng shown minor recovery of 0.50%.
Economic data: US CPI up ticked by 0.1% m/m compared to forecast of 0.2% and consumer inflation excluding the volatile food and energy components rose by 0.2% after jumping 0.01% in Dec.
Coronavirus: According to health officials in China Hubei province, the total number of death increased by 116 to 1310, infected people rose to 65000.
US 10 year bond yield has recovered slightly after more than 4% decline. The spread between US 10- year and 2 years has narrowed to 16.3 bps from 35.7 bps.
The near term resistance is around $1583, any break over targets $1592/$1600. On the flip side, the immediate support is at $1545 and any break will drag the gold underneath till $1535/$1520 likely. Extreme bearishness only under $1535.
It is good to buy on dips around $1568 with SL around $1560 for the TP of $1592/$1600.