Ichimoku analysis (8-hour)
Tenken-Sen- $1563.61
Kijun-Sen- $1569.81
Gold has shown a minor recovery till $1569.90 from a low of $1547. The outbreak of Coronavirus is supporting the prices of gold at lower levels. The total number of people died has increased to 630 and the number of infected cases crossed 30000. Market eyes US Nonfarm payroll data for further direction.
US economy is expected to add 160000 jobs in Jan compared to 145000 increase in Dec, the unemployment to be stable at 3.5%. Hourly earnings to gain 0.3% vs 0.1% in Dec.
The US 10 year bond yield has halted its 1 -week of the bullish trend and declined more than 3% from 1.68%. The spread between US 10- year and 2 years have slightly widened 18.9 bps from 15.6 bps.
The near term resistance is around $1574, any break over targets $1583/$1592. 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 $1545-47 with SL around $1535 for the TP of $1583/$1592.
