Gold Price Analysis: XAU/USD’s downside appears cushioned ahead of Yellen’s hearings – Confluence Detector
Having tested the $1800 level, Gold (XAU/USD) extends Monday’s swift recovery ahead of the much-awaited Treasury Secretary nominee Janet Yellen’s Senate hearings. Yellen is set to endorse a bigger coronavirus relief package.
Meanwhile, President-elect Biden will push for the $1.9 trillion stimulus plan once he takes the office on January 20. Expectations of additional fiscal support to fight the pandemic recession continue to bode well for the inflation-hedge, gold. Let’s take a look at how the metal is positioned on the charts.
Gold Price Analysis: All eyes on the greenback and US yields
Gold prices are trading at $1,838.76 and between a low of $1,836.11 and $1,839.47. Pressured by a relentless correction in the greenback, gold prices have been struggling of late.
The US dollar strengthened for a third consecutive day on Monday, reaching a four week high, as risk aversion swept through currency markets, weighing on bullish attempts on the yellow metal.
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