Ichimoku Analysis (Daily Chart)
Tenken-Sen- $1707
Kijun-Sen- $1718
Gold trades flat between $1679 and $1745 for the past ten days. The increase in risk aversion due to the second wave of coronavirus outbreak in the U.S and China. The number of new cases hits record high in 6 states such as Arizona, Florida, Oklahoma, Oregon, and Texas.
U.S housing starts rose 4.3% in May better than the decline of 26.4% in Apr and 19% in Mar. The building permits in May rose by 1.1% to 1.22M slightly less than an estimate of 1.23M.
US Dollar Index – bullish (Negative for Gold)
S&P500- Slightly bearish (positive for gold)
US Bond yield- Weak (mildly positive for gold)
Technical:
The yellow metal is struggling to break above $1745, any violation will take the yellow metal till $1765. Significant trend continuation can be seen if it surges past $1765, a jump till $1800 likely
The immediate support is around $1716, any indicative break beneath targets $1708/$1700/$1679.
It is good to buy on dips around $1696-98 with SL around $1680 for the TP at $1745.
