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Gold trades below 200- H EMA, dip till $1518 likely

Ichimoku Analysis (hourly chart)

Tenken-Sen- $1551.70

Kijun-Sen- $1535.20

Gold continues to trade weak and after sudden jump till $1567 on easing of geopolitical tensions and trade deal optimism. The US has removed China from the currency manipulator list before two countries are expected to sign a phase one trade deal tomorrow. It hits low of $1552.09 and is currently trading around $1553.376.

Markets eye US CPI data for further direction. US 10 year bond yield recovered more than 2.5% after a minor decline of 1.815%. The spread between US 10 year and 2 years has narrowed to 26.6 bps from 35.7 bps.

The near term resistance is around $1575, any break over targets $1588/$1600. On the flip side, the yellow metal holds well below 200- H EMA and a dip till $1518/$1500 likely.

It is good to sell on rallies around $1543-44 with SL $1551 for the TP of $1518/$1500.

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