Ichimoku Analysis (Daily Chart)
Tenken-Sen- $1741.87
Kijun-Sen- $1725
Gold has shown a minor decline after hitting 8- year high at $1779. The minor sell-off was due to strength in the US dollar. The investors are switching into safer assets like Gold on fear of the second wave of coronavirus. The dip in US bond yield and global stock markets are also supporting the yellow metal at lower levels.
US Dollar Index – Strong (negative for Gold)
S&P500- Bearish (positive for gold)
US Bond yield- weak (bullish for gold)
Technical:
The yellow metal is facing strong resistance at $1780 and any violation above confirms bullish continuation. A jump till $1800 likely
The immediate support is around $1753 (5-day EMA), any indicative break beneath targets $1745/$1727 (21- day MA)/$1700.
It is good to buy on dips around $1750 with SL around $1740 for the TP at $1800.
