Ichimoku Analysis (Daily Chart)
Tenken-Sen- $1737
Kijun-Sen- $1720
Gold continues to trade higher and hits fresh 7-year high at $1774.50. The easing of US bond yield and geopolitical tension is supporting the yellow metal. The US Fed is expected to keep rates on hold till mid of 2021 and to increase the pace of the bond-buying program. The second wave of coronavirus might cap the V-Shaped recovery.
US Dollar Index – weak (positive for Gold)
S&P500- slightly bullish (negative for gold)
US Bond yield- sideways (neutral for gold)
Technical:
The yellow metal is facing strong resistance at $177 and any violation above confirms bullish continuation. A jump till $1800 likely
The immediate support is around $1745 (resistance turned into support), any indicative break beneath targets $1733/$1716/$1700.
It is good to buy on dips around $1750 with SL around $1740 for the TP at $1800.
