FxWirePro: Gold Daily Outlook

Ichimoku analysis (8-hour)

Tenken-Sen- $1569.86

Kijun-Sen- $1569.86

Gold continues to trade weak for 2nd consecutive days on account of the strong dollar. Global stock markets especially, S&P500 hit a fresh record high as fear over coronavirus eased. US private sector has added 291000 jobs in Jan compared to a forecast of 157000 vs 199000 in Dec (revised from 202000). US ISM services came at 55.5 in Jan, the highest level since Aug. The yellow metal hits a low of $1547 and is currently trading around $1554.18.

The US 10 year bond yield shown a minor recovery of more than 10% from the bottom of 1.50%. The spread between US 10- year and 2 years have slightly widened 20.9 bps from 17 bps.

The near term resistance is around $1563, any break over targets $1575/$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 $1535-37 with SL around $1518 for the TP of $1600/$1611.