Breaking: Gold surges above $1,600 amid the Fed's flooding, upbeat market mood

Yohay Elam FXStreet

Gold is on the rise and has topped $1,600, already up over 3% of around $50 up on the day. XAU/USD 's next upside targets are $1,638, followed by $1,666, and finally by $1,702. Support awaits at $1,582, which capped the precious metal on its way up.

The market mood is upbeat after the Federal Reserve announced an unlimited Quantitative Easing program, in which it floods markets with dollars to support businesses amid the coronavirus crisis. S&P futures have hit 5% – the upper limit. Investors are also optimistic about the lower number of new Covid-19 deaths in Italy, the current epicenter of the disease.

Republicans and Democrats continue tussling over a stimulus plan worth well over $1 trillion dollars, but investors remain optimistic that a solution can be found to keep the economy afloat.

The four-hour chart shows the recent moves which began with the Fed decision:

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

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