FxWirePro: Gold downside capped by 10- day MA, good to buy on dips

Ichimoku Analysis (Daily Chart)

Tenken-Sen- $1746

Kijun-Sen- $1725

Gold has recovered sharply after hitting a low of $1747. The demand for Safe-haven assets is supporting the yellow metal at lower levels. The number of new cases in the U.S is increasing sharply with Florida, South Carolina and Georgia hit a record high. It has formed a temporary top around $1779.50 and is currently trading around $1773.50.

US consumer spending surged by 8.2% compared to the previous month -12.6%. Durable goods orders came at 15.8% much better than the forecast of 10.3%, the highest level since Jul 2014. The number of people filed for unemployment benefits rose to 1.48 million last week worst than expectations of 1.35 M.

US Dollar Index – Slightly weak (negative for Gold)

S&P500- bearish (Positive for gold)

US Bond yield- weak (bullish for gold)

Technical:

The yellow metal is facing strong resistance at $1780 and any violation above confirms bullish continuation. A jump till $1800 likely

The immediate support is around $1746.50 (10-day MA), any indicative break beneath targets $1731 (21- day MA)/$1716/$1700.

It is good to buy on dips around $1760-62 with SL around $1747 for the TP at $1800.