FxWirePro: Gold jumps more than 3% after Fed's surprise cut, good to buy on dips

Ichimoku Analysis (Daily chart)

Tenken-Sen- $1626

Kijun-Sen- $1618

Gold has surged sharply more than $50 after Fed's surprise cut. US Central bank cuts rates by 50 bps emergency, the first time since 2008. The members declared "the fundamentals of the US economy remains strong" but downside risks due to coronavirus. It hits a high of $1652 and is currently trading around $1643.35.

US 10-year lost more than 20% after the Fed cut and trades below 1%. The spread between US 10 and 2- year yield has widened slightly to 30 bps from 24 bps.

Technically, it is facing strong support at $1598 (21- day MA) and any close below targets $1560/$1535.

The immediate resistance is around $1610, an indicative break above will take the yellow metal till $1626/$1635/$1660.

It is good to buy on dips around $1570-75 with SL around $1550 for the TP of $1685.