FxWirePro: Gold downside capped by 21-day MA, any break below targets $1600 

Ichimoku Analysis (4-Hour chart)

Tenken-Sen- $1633

Kijun-Sen- $1625

Gold is trading weak and lost nearly $70 from high $1704 on US dollar strength and jump in US bond yield. US markets declined more than 10% in the past two days as coronavirus will impact global growth. The demand for safe-haven assets will increase due to global uncertainty. The yellow metal hits an intraday low of $1631 and is currently trading around $1636.30.

US 10-year yield has declined more than 7% after a massive jump of more than 140% from an all-time low of 0.36%. The spread between 10 and 2-year has widened to 34 bps from 11.9 bps.

On the flip side, near-term support is around $1630 (21-day MA) and any violation below will drag the gold down till $1626/$1616.

The immediate resistance is at $1668 and any indicative break above $1675/$1685.

It is good to sell on rallies around $1673-75 with SL around $1685 for the TP of $1626.