Ichimoku Analysis (Weekly Chart)
Gold was one of the best performers in this quarter and jumped more than 12.5%. It is the biggest for a quarter since 2016. The spread of coronavirus and more quantitative easing by major central banks is supporting yellow metal. It hits a high of $1779 and is currently trading around $1770.
The total number of coronavirus cases globally crossed 10 million with the U.S, Brazil tops the chart with 2.5 and 1.3 million respectively. The partial lockdown in most major countries especially the USA, due to fear of the second wave of coronavirus might affect the global economy. It will increase demand for Safe-haven assets like the Gold, yen.
US Dollar Index – Flat (neutral for yellow metal)
S&P500- bearish (Positive for gold)
US Bond yield- weak (bullish for gold)
The yellow metal is facing significant resistance at $1780, any violation above confirms bullish continuation. A jump till $1800 likely
The immediate support is around $1752 (23.6% fib), any indicative break beneath targets $1740/$1732 (7- W EMA)/$1716/$1700.
It is good to buy on dips around $1749-50 with SL around $1730 for the TP at $1800/$1825.