FxWirePro: Gold Daily Outlook

Ichimoku Analysis (Daily chart)

Tenken-Sen- $1548

Kijun-Sen- $1577

Gold is consolidating after a strong recovery from $1455.The yellow metal is holding above $1600 despite a surge in the global stock market. The jump in several cases due coronavirus is increasing day by day. The demand for Safe-haven assets is supporting gold at a lower level.

DXY continues to trade weak for the past 4 trading days and lost more than 300 pips on broad-based US dollar selling.

The total number of people infected due to coronavirus increased to 467594 and the number of infected cases has surpassed China and Italy. US 10-year yield is trading flat after a 10% decline. The spread between US 10-year and 2-year has narrowed to 51 bps from 70 bps.

Technically, near term support is around $1595 and any violation below will drag the gold down till $1578/$1545.

On the higher side, immediate resistance is around $1640 and indicative break above will take the gold till $1660/$1700.

It is good to buy on dips around $1595-600 with SL around $1575 for the TP of $1700.