FxWirePro: Gold trades higher on Safe-haven demand, good to buy on dips

Ichimoku Analysis (Daily chart)

Tenken-Sen- $1626

Kijun-Sen- $1618

Gold recovers sharply more than $40 on Safe-haven demand. US stocks have shown a massive sell-off of more than 3% due to coronavirus. The global economy is expected to pose a downside risk on account of the virus.

Markets eye US nonfarm payroll data for further direction. US economy is expected to have added 175000 jobs in Feb vs 225000 Jan.

US 10-year has lost more than 15% and hits an all-time low of 0.811%. The spread between US 10 and 2- year yield has narrowed slightly from 37.6 bps to 24 bps.

Technically, it is facing strong support at $1607 (21- day MA) and any close below targets $1580/$1560/$1535.

The immediate resistance is around $1685, an indicative break above will take the yellow metal till $1700/$1725.

It is good to buy on dips around $1660-61 with SL around $1645 for the TP of $1720.