Ichimoku Analysis (Daily chart)
Tenken-Sen- $1573.70
Kijun-Sen- $1536.68
Gold recovered more than $20 from low of $1536 on weak US dollar and declining bond yield. The yellow metal was one of the best performers in the past year and jumped more than 25% on the trade war and geopolitical tension. US President Trump has signed an 86 page initial trade deal agreement with senior Chinese leaders yesterday after two years of negotiations. It hits low of $1558 and is currently trading around $1555.
The US Producer price index rose 0.1% m/m compared to forecast of 0.2%, wholesale inflation inched up 1.3% 2019 Vs 2.6% in 2018. US 10 year bond yield is trading lower for the past 5 trading days and lost more than 6%. The spread between US 10 year and 2 years has narrowed to 23 bps from 35.7 bps
The near term resistance is around $1575, any break over targets $1588/$1600. On the flip side, the yellow metal has taken support near-daily Kijun-Sen at $1536 and any break will drag the gold down till $1518/$1500 likely.
It is good to sell on rallies around $1562-63 with SL $1574 for the TP of $1537/$1520.


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