Gold prices remain positive for the second consecutive day, currently up 0.27% intraday to $1,884, during the early Wednesday. The yellow metal recently benefited from the broad US dollar weakness amid uncertainty over the American coronavirus (COVID-19) aid package and first case of the covid variant in Colorado.
Following the initial drama over blocking the $2,000 paycheck, Senate Majority Republican Leader Mitch McConnell put forward the much-awaited stimulus bill while adding legislation about social media companies and election fraud studies to the proposal for votes.
While the hesitant move couldn’t disappoint market bulls, comments from the US Treasury Secretary that $600 paychecks, agreed by the Congress, will be out tonight, strengthened the mood and weighed on the US dollar index (DXY), down 0.25% to 89.78 now.
Also on the negative side for the US currency, positive for the yellow metal, could be the first case of covid strain in Colorado, with no travel history, as well as China’s readiness to return two Hong Kong activists out of 12 details over the border crossing.
Looking forward, the yellow metal traders will keep eyes on the updates from the US Senate as well as virus headlines for fresh impulse ahead of the North American session comprising second-tier activity and housing data for November and December respectively.
Gold: Key levels to watch
A convergence of the first pivot point resistance on daily (1D) chart, 61.8% Fibonacci retracement of the weekly move and previous high on the 1D guards immediate upside of the yellow metal around $1,888.
Also acting as a minor stop ahead of the $1,900 round-figure could be the 61.8% Fibonacci retracement of one month (1M) near $1,890.
It should, however, be noted that the bulls are well directed to confront first pivot point resistance on a monthly (M1) basis and previous week high close to $1,909 unless staying above $1,875.
Ahead of the stated $1,875 support, comprising 38.2% Fibonacci retracement on one week 1W and SMA 10 on 1D, 100 and 200 HMAs join 5-day SMA on daily and 61.8% Fibonacci retracement of 1D moves to challenge the bears around $1,878.
Additionally, 38.2% Fibonacci retracement on 1D, middle bank of Bollinger on 15-minutes and 50-HMA also add filters to the downside around $1,881.
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