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:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.