Ichimoku Analysis (1-Hour chart)
Tenken-Sen- $1684
Kijun-Sen- $1672
Gold declined sharply after hitting a 7-year high at $1703. The yellow metal was one of the best performers this year and jumped more than 10% due to the outbreak of coronavirus and declining US bond yield. It hits an intraday low of $1668.
US 10-year yield declined sharply and touched an all-time low at 0.476% and spread between 10 and 2-year has narrowed to 18 bps from 35 bps.
On the flip side, near-term support is around $1655 (100-HMA) and any violation below will drag the gold down till $1642/$1626.
The immediate resistance is at $1685 and any indicative break above $1703/$1720.
It is good to sell on rallies around $1673-75 with SL around $1685 for the TP of $1626.
