Gold flirts with the $1,900 level in anticipation of news on the fiscal front

Gold treads water around $1,900 ahead of US stimulus deadline while US dollar demand persists amid jittery markets. Technically, RSI has turned neutral and the yellow metal continues to waver in a two-month-long falling wedge formation, awaiting a range breakout, FXStreet’s Dhwani Mehta reports.

See: Gold needs to clear the $1,973 September high to resume the uptrend – Standard Chartered

Key quotes

“In absence of relevant US macroeconomic news featured on Tuesday, the developments around the stimulus talks will continue to remain a key driver for gold trades, as investors turn cautious ahead of the stimulus deadline.”

“The 14-day Relative Strength Index (RSI) has turned neutral just at the midline, suggesting a lack of clear directional bias. Therefore, a bull-bear tug-of-war is likely to extend, making up for up and down sessions, unless the price closes the day above the critical falling trendline resistance at $1,916. A technical breakout would be confirmed above the latter, with immediate resistance aligned at the 50-daily moving average (DMA) at $1,924.”

“Alternatively, the bulls remain hopeful so long as they hold above the 21-DMA at $1,895. Acceptance below the latter could open floors for a test of the 100-DMA at $1,875 once again.”


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.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD: Bears hold the grip, critical challenge at 1.2000

The greenback firmed up at the end of the week, closing it with substantial gains against most major rivals. Renewed coronavirus concerns and poor macroeconomic data spurred risk-off. EUR/USD is firmly bearish.


GBP/USD: Further restrictions in the UK may hit the pound

The GBP/USD pair trimmed most of its weekly gains on Friday and settled in the 1.3580 price zone, amid risk-off fueling dollar’s demand. UK GDP contracted by less than anticipated in November, Industrial Production plunged.


Gold: Further decline toward $1,800 remains on the cards

Gold failed to stage a convincing rebound this week. After losing more than 2% in the previous week, the XAU/USD pair extended its slide on Monday and touched its lowest level since early December at $1,817. 

Gold news

Darkest fefore dawn

The upcoming economic news is likely to be dreadful, and if it is not dreadful, it will be mostly ignored. This includes the release of the preliminary January PMI figures at the end of the week. Japan is extending its national emergency to another five prefectures, which collectively account for over half of the nation's GDP.

Read more

DXY breaks above key downtrend, eyes move above 91.00

USD has been strongly supported on what has shaped up to be a very much risk off final trading day of the week. Most G10/USD pairs have seen significant weakness, aside from CHF/USD and JPY/USD, given that the two currencies are also considered “safe havens”.

US Dollar Index News