FxWirePro: Gold declines on coronavirus, major weakness only below $1536

Ichimoku Analysis (hourly chart)

Tenken-Sen- $1555.17

Kijun-Sen- $1557.55

Gold is trading lower and lost more than $20 on the outbreak of the coronavirus. Markets are predicting that this will reduce the buying of gold in China for this new year. But the overall trend will be still on the higher side as further spread of it will increase demand for Safe-haven assets. S&P futures have recovered more than 0.8% from yesterday's low of 3307.

US 10 year bond yield has recovered more than 1.5% after hitting a low of 1.766%. The spread between US 10- year and 2 years has narrowed to 24.3 bps from 35.7 bps.

The near term resistance is around $1568, any break over targets $1574/$1582. On the flip side, the immediate support is at $1546 and any break will drag the gold down till $1540/$1536 likely. Extreme bearishness only below $1537 (21- day MA).

It is good to buy on dips around $1545-46 with SL $1537 for the TP of $1568/$1574.