FxWirePro: Gold Daily Outlook

Ichimoku Analysis (Daily Chart)

Tenken-Sen- $1694

Kijun-Sen- $1599

 Gold is trading flat after hitting a low of $1671 yesterday. The slight strength in the US dollar and a minor surge in the global stock market is putting pressure on yellow metal at higher levels. The major factors to be watched are

Coronavirus

The total number of people infected due to coronavirus rose to 2482513 with the U.S is in the top with 792938 and four major European economies like Spain, Italy, Germany, and France at 200210,181228, 155383 and 147065.

 US Market:

US stocks especially Dow Jones and S&P500 declined more than 4% after 4 weeks of the continuous bull trend. 

Bond Yield

US 10-year yield is trading weak for the past 5 days and declined more than 25%. The spread between US-2 and 10-year narrowed to 37bps from 72 bps. 

Technicals:

On the flip side, near term support is at $1670 and any violation below will drag the yellow metal down till $1660/$1518.

The immediate resistance is around $1700, any indicative break above targets $1725/$1740.

It is good to buy on dips around $1670 with SL around $1650 for the TP of $1740.