Gold Price News and Forecast: XAU/USD cheers US stimulus, but yields may cap gains
|Gold Price Analysis: XAU/USD cheers US stimulus, but yields may cap gains
Gold is trading near $1,713 per ounce at press time, up 0.88% on the day, having signaled indecision or seller exhaustion with a classic Doji candle on Friday.
The yellow metal, a proven store of value asset, looks to have picked up a bid in response to the U.S. Senate's passage of President Joe Biden's $1.9 trillion stimulus bill, which now heads back to the House for clearance. If approved, the bill will pave the way for $1,400 checks and jobless aid. Fiscal stimulus is inflationary.
The Chart of the Week: Gold price remains under pressure at key resistance
The price of gold, as forecasted in the prior analysis, has been into to test the key weekly support territory in recent bearish moves. However, the following top-down analysis illustrates that the price can now be expected t to correct back towards $1,710 before the next downside move.
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