FxWirePro: Gold trades below 21- day MA, dip till $18700 likely
Ichimoku Analysis (Daily Chart)
Gold declined sharply and lost more than $150 from yesterday's low as Russia approved vaccine for COVID-19. Russian President Putin said to reporters that Vaccine "Sputnik V" has been approved and his daughter got vaccinated. The strong US dollar and jump in US yield is putting pressure on yellow metal at higher levels. US dollar index is trading in a narrow range and violation above 94 confirms further bullishness. The US 10-yield recovered more than 30% in the past four days and real yield is at -0.99% from -1.08%.
US Dollar Index – Bullish (negative for yellow metal)
S&P500- Positive (negative for gold)
US Bond yield- Positive (negative for gold)
The yellow metal is trading weak after hitting an all-time high at $2074. It is currently trading around $1888.
The immediate support is around $1870, any indicative break below targets $1846/$1825/$1800. The near term resistance is at $1930, the violation above will take the commodity to next level $1950/$1975/$2000.
It is good to sell on rallies around $1918-20 with SL $1940 for the TP of $1800.