Gold Price Analysis: XAU/USD steadies above $1,850, key levels remain intact
The XAU/USD pair closed the first day of the week virtually unchanged at $1,855 and seems to be having a difficult time making a decisive move in either direction on Tuesday. As of writing, the pair was posting small daily losses at $1,854.
XAU/USD technical outlook
The Relative Strength Index (RSI) indicator on the daily chart is staying below 50 for the second straight day on Tuesday, suggesting that the bullish momentum is struggling to build up. However, the 200-day SMA, currently located at $1,850 continues to act as a key support and sellers may want to wait to see a daily close below that level before dragging gold lower. Below $1,850, $1,845 (Fibonacci 61.8% retracement of the December rally) could be seen as the next support ahead of $1,837 (Jan. 22 low).
Will Biden’s executive blitzkrieg defeat gold?
A new sheriff is in in town, and he’s making some rearrangements. Will the new order of things support the price of gold?
What a blitzkrieg! Joe Biden certainly wastes no time in signing executive orders. Since inauguration, he introduced several policies, including mandating masks on federal property, in airports and on certain public transportation, and the end of a travel bank on some countries. Biden also terminated the construction of the wall at the Mexican border, halted the withdrawal from the WHO and placed the U.S. back on the path to rejoining the Paris climate accord.
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