Gold Price Analysis: XAU/USD refreshes intraday high below $1,900 amid US stimulus updates


  • Gold prices extend recovery moves from $1,871 amid risk-on mood.
  • US House passes Trump-signed covid aid package, voting in the Senate will be the key.
  • Light calendar, holiday-thinned trading restricts market moves.

Gold takes the bids near $1,880 during Tuesday’s Asian session. In doing so, the yellow metal stretches the latest corrective pullback from $1,871 while trying to defy the previous day’s downbeat performance.

Behind the moves is the market optimism emanating from the US coronavirus (COVID-19) aid package news. Following US President Donald Trump’s signing of the much-awaited stimulus, the House passed the bill containing Trump’s demand of $2,000 paycheck. The bill heads to the Senate, up for Tuesday, where the Republicans may block the road to success while citing the anticipated widening of the budget deficit.

Not everything signed by President Trump crossed the House on Tuesday as policymakers voted 322-to-87 to override one of Mr. Trump’s vetoes, underscoring the sweeping popularity of the military legislation, which authorizes a pay raise for the nation’s troops, said The New York Times.

It’s worth mentioning that the Aussie-China tussle, COVID-19 upddates and expected recovery in the US economic growth for 2021, due to the passage of the aid package, also contribute to the recent market moves despite holiday mood restricting the momentum.

Against this backdrop, Wall Street benchmarks refreshed record tops while S&P 500 Futures print mild gains above 3,700 by press time.

Looking forward, the Senate’s performance on the US stimulus will be the key for short-term market direction amid a lack of major data/events.

Technical analysis

Unless providing a daily closing below an ascending trend line from November 30, a $1,878 now, gold prices eye the $1,900 threshold.

Additional important levels

Overview
Today last price 1879.55
Today Daily Change 5.96
Today Daily Change % 0.32%
Today daily open 1873.59
 
Trends
Daily SMA20 1856.23
Daily SMA50 1867.43
Daily SMA100 1896.15
Daily SMA200 1825.88
 
Levels
Previous Daily High 1900.35
Previous Daily Low 1869.32
Previous Weekly High 1906.87
Previous Weekly Low 1855.28
Previous Monthly High 1965.58
Previous Monthly Low 1764.6
Daily Fibonacci 38.2% 1881.17
Daily Fibonacci 61.8% 1888.5
Daily Pivot Point S1 1861.82
Daily Pivot Point S2 1850.06
Daily Pivot Point S3 1830.79
Daily Pivot Point R1 1892.85
Daily Pivot Point R2 1912.12
Daily Pivot Point R3 1923.88

 

 

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