FxWirePro: Gold Daily Outlook

Ichimoku Analysis (4-hour chart)

Tenken-Sen- $1569.60

Kijun-Sen- $1564.80

Gold is trading in a narrow range between $1560 and $1577 for the past 3 trading days. The major factors affecting the yellow metal are

Global stock market- US markets are trading at an all-time high and jumped more than 2% this week despite the outbreak of coronavirus.

Coronavirus: WHO has named a new coronavirus as COVID-19. The CO stands for corona, the VI for virus and the D for the disease. The number of death in China has crossed 1100, the total number of infected people to 44653.

US 10 year bond yield has recovered more than a 5% low of  1.53%. The spread between US 10- year and 2 years has narrowed to 17.4 bps from 35.7 bps.

The near term resistance is around $1583, any break over targets $1592/$1600. 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 $1555 with SL around $1545 for the TP of $1583/$1592.