Gold Price News and Forecast: XAU/USD downtrend will start if it drops below 1836 level
|Higher yields hit gold, but for how long?
The price of gold remains at $1,850, and the key drivers are higher bond yields and a stronger risk appetite.
Last week, the yellow metal tanked below $1,900 again, and it hasn't rebounded since the plunge – instead, the price of gold has stayed at around $1,850.
What happened? The main driver of the recent weakness in the precious metals market has been the Democratic victory in the Georgia Senate elections. Thanks to this trifecta, the Democrats have taken control of the White House, the House of Representatives, and the Senate. Consequently, there are lower chances of a political gridlock in Washington and higher chances of smooth cooperation between Congress and the incoming administration of Joe Biden. So, the expectations of additional economic support have risen, thereby strengthening hopes for a quicker economic recovery. Read more...
Gold: Downtrend will start if it drops below 1836 level
Uptrend scenario
An uptrend will start as soon, as the market rises above resistance level 1845, which will be followed by moving up to resistance level 1857.
Downtrend scenario
An downtrend will start as soon, as the market drops below support level 1836, which will be followed by moving down to support level 1827. Read more...
Gold Price Analysis: XAU/USD's path of least resistance appears down, eyes on Powell, Biden – Confluence Detector
Gold (XAU/USD) is licking its wounds after tumbling $20 in a quick move earlier in the Asian trades. Reports that a bigger-than-expected US stimulus plan worth $2 trillion is due to be announced by President-elect Joe Biden knocked-off the US Treasuries, fuelling a rebound in the US dollar and Treasury yields.
The expectations of a higher US fiscal stimulus plan are likely to keep the bounce in the Treasury yields intact. Therefore, the risks remain skewed to the downside in gold in the lead up to the US weekly jobs data and the Fed Chair Powell's speech. Although a bounce cannot be ruled out after the sharp move to the downside. Read more...
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