Ichimoku Analysis (Daily chart)
Tenken-Sen- $1493.15
Kijun-Sen- $1483
Gold is trading higher for the past 1-1/2 months and jumped more than $70 on a weak US dollar. US dollar index was one the worst performer previous month and lost more than 200 pips from minor top 97.82 level. The index is trading well below trend line support, a dip till 95.80 likely.
US 10- year bond yield is trading flat for the past 1-week after hitting high of 1.95%. It has formed a minor bottom around 1.428% and jumped more than 35%. The spread between US 10 and 2-year has widened to 34 bps from 12 bps one month earlier.
The pair is trading well above the 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 $1477 (5- W MA) and any violation underneath will drag the gold down till $1463/$1473/$1456/$1449.
It is good to buy on dips around $1500 with SL $1480 for the TP of $1555
