Gold Price Analysis: XAU/USD buyers eye $1,900 as US Pres. Trump teases ‘good news’ on covid relief bill
- Gold probes intraday high after the week-start gap-up to $1,890.76.
- US President Trump is up for providing information on the covid relief bill.
- Risks remain sluggish amid concerns over US stimulus, year-end holidays.
- Capitol Hill members eye to tackle the fear of US Government Shutdown on Monday.
Gold prices waver around $1,890-88, up 0.45% intraday, during Monday’s Asian session. That said, the yellow metal jumped from last week’s close of near $1,880 to around $1,891 at the week’s start as traders initially reacted to the Brexit deal passage.
Having initially stepped back from signing the coronavirus (COVID-19) relief bill, already passed by the Congress, US President Donald Trump recently tweeted ‘good news’ on the much-awaited aid package. In the latest update, the Washington Post said Capitol Hill members are ready to “make one last attempt to avert a shutdown on Monday.”
Other than the stimulus update, comments from AstraZeneca CEO Pascal Soriot that their covid vaccine is effective against new strain joins Brexit deal passage to favor the risks.
That said, S&P 500 Futures pierce the 3,700 mark to print a 0.23% intraday gain versus the mild losses before a few minutes.
Looking forward, off in major markets and the year-end holiday season may challenge the gold price momentum. However, positive news on the US relief bill can favor the bulls. It should, however, be noted that the American government will be shut down if policymakers fail to approve the bills before Tuesday ends. The same can weigh risks and probe gold buyers afterward.
Technical analysis
An ascending trend line from November 30, at $1,879 now, restricts the short-term downside of the metal. Meanwhile, gold bulls can keep attacking $1,900 while targeting a five-week-old resistance line, at $1,928.50 now.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
