Ichimoku Analysis (Hourly Chart)
Kijun-Sen- $1890
Tenken-Sen-$1903
Gold has taken support near trend line support and shown a minor recovery. The strength in the US dollar is putting pressure on yellow metals at higher levels. The optimism of US fresh stimulus before the election got faded due to a lack of agreement between the Republic and democrats. The Consumer price index rose 0.2% MoM in Sep compared to a forecast of 0.2%. The headline inflation for the year increased by 1.4% vs 1.3% in August.
US Bond yield:
The US 10-year bond has seen the biggest drop in four months as a clinical trial of COVID -19 drug got paused. It got dropped nearly 10% from the minor top of 0.797%. The yield and yellow metal are inversely related to each other (slightly positive for gold).
S&P500:
S&P500 declined more than 50 points from a high of 3550. Any break below 3500 (23.6% fib) confirms minor bearishness, a dip till 3485/3470 is possible. (Slightly bullish for gold).
US Dollar Index :
DXY has broken minor trend line resistance at 93.45 and is holding above that level. A jump till 94/94.50 is possible. (negative for gold).
The yellow metal is facing strong resistance at $1933 (38.2% fib). Any indicative violation above will take to the next level till $1950/$1975/$2000. The near term support is around $1900, any indicative break below will take the commodity till $1880/$1860/$1848.
It is good to buy on dips at around $1880 with SL around $1859 for the TP of $1950/$1975.
