Ichimoku Analysis (Daily chart)
Gold continues to trade weak after a massive rally till $1611 on Jan 8th, 2020 on US-Iran escalation. The yellow metal has lost its shine on slight easing of Geopolitical tension and dipped more than 50 dollars. US and China to sign phase one deal by Jan 15th, both countries agreed to resume economic and trade talks. The trade deal optimism is putting pressure on the gold at higher levels. It hits low of $1552.09 and is currently trading around $1553.376.
The American economy has added 145k jobs in Dec vs forecast of 162k and the unemployment rate came at 5.6%. Average hourly earnings m/m at 0.1% vs estimate 0.3%. US 10 year bond yield is trading slightly weak after jumping more than 7% from low of 1.90%. The spread between US 10 year and 2 years has narrowed to 24.9 bps from 35.7 bps
The near term resistance is around $1575, any break over targets $1588/$1600. On the flip side, nearby significant support is around $1538 (200 -H MA) and violation underneath will drag the gold down till $1518/$1507.
It is good to sell on rallies around $1555-56 with SL $1563 for the TP of $1538/$1518.