FxWirePro: Gold Daily Outlook
Ichimoku Analysis (4-hour chart)
Gold is trading flat after hitting a high of $1640. US futures showing a minor uptrend after China reported better than expected manufacturing data. China PMI came at 52 in Mar jumped from low of 35.7.
The number of infected cases due to coronavirus is at 785000, while the U.S crossed 160000, especially in New York more than 60000. The demand for a Safe-haven increase is supporting the yellow metal at lower levels.
DXY recovered sharply more than 50 pips from a low of 98.84, any violation above 99.60 confirms minor bullishness.
US 10-year yield shown minor recovery of more than 20% from low of 0.60%. The spread between US 10-year and 2-year has narrowed to 46 bps from 70 bps.
Technically, near term support is around $1600 (200-4H MA) and any violation below will drag the gold down till $1587/$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 $1600-05 with SL around $1580 for the TP of $1700.