Ichimoku Analysis (Daily Chart)
Tenken-Sen- $1491.60
Kijun-Sen- $1481.40
Gold I is trading higher for the past 4 days and jumped more than $35 this week. The jump was supported by the action of PBOC adding more liquidity measures. The central bank has reduced interest rate on 14-day reverse repurchase agreements to 2.65% from 2.70%. The yellow metal hits 2-month high around $1514 and is currently trading around $1513.17.
US 10- year bond yield extends to trade higher for the past 4 months and recovered more than 35% from low of 1.428%. The pair is trading well above the cloud, psychological resistance at $1500. The near term resistance is around $1516, beyond that level will take the gold till $1525/$1555 is possible.
On the flip side, nearby significant support is around $1490 (5- day MA) and any violation underneath will drag the gold down till $1482/$1473/$1456/$1449.
It is good to buy on dips around $1500 with SL $1480 for the TP of $1555
