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

FXStreet Team FXStreet

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.”

Author

FXStreet Team

FXStreet

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