Gold Price News and Forecast: XAU/USD mildly weak above $1,600 amid mixed signals for US stimulus package

FXStreet Team FXStreet

Gold struggles to cheer US dollar weakness

Gold is flashing red in Asia despite the weakness in the US dollar, its biggest nemesis. The yellow metal is currently trading at $1,606 per ounce, representing a 0.5% decline on the day. Meanwhile, the dollar index, which tracks the value of the greenback against majors, is hovering near 100.65 - down 0.27% on the day.

Markets are offering US dollars, possibly on expectations of the US fiscal stimulus bill. The US Senate ran into some last-minute snag Wednesday afternoon and struggled to pass a $2.2 trillion relief package designed to support households and businesses, which are facing a crisis due to the coronavirus outbreak.

XAU/USD

Overview
Today last price	1604.55
Today Daily Change	-12.51
Today Daily Change %	-0.77
Today daily open	1617.06

Trends
Daily SMA20	1589.67
Daily SMA50	1585.78
Daily SMA100	1538.44
Daily SMA200	1506.95

Levels
Previous Daily High	1638.28
Previous Daily Low	1598.21
Previous Weekly High	1561
Previous Weekly Low	1451.3
Previous Monthly High	1689.4
Previous Monthly Low	1547.56
Daily Fibonacci 38.2%	1613.52
Daily Fibonacci 61.8%	1622.97
Daily Pivot Point S1	1597.42
Daily Pivot Point S2	1577.78
Daily Pivot Point S3	1557.35
Daily Pivot Point R1	1637.49
Daily Pivot Point R2	1657.92
Daily Pivot Point R3	1677.56

Gold: Mildly weak above $1,600 amid mixed signals for US stimulus package

Having slipped from the two-week top, gold prices drop to $1,612, down 0.26%, amid the initial Asian session on Thursday. Although broad US dollar weakness and the recent recovery in the market’s risk-tone seem to please the buyers, challenges to the US aid package as well as pandemic details keep the commodity under pressure.

Despite agreeing over the estimated $2.2 trillion Coronavirus (COVID-19) Bill, Fox News suggests the US policymakers are jostling over the details. While US President Donald Trump and Treasury Secretary Steve Mnuchin tried to sell their efforts and signaled the voting tonight, the House Leader Nancy Pelosi said that she does not think House can pass stimulus bill under unanimous consent. The diplomat also mentioned that the house will give its members at least 24 hours' notice before voting on economic relief bill.

AUD/USD keeps range near mid-0.7100s as USD bulls await US CPI

AUD/USD steadies near mid-0.7100s in the Asian session on Friday, stalling the previous day's sharp decline to an over one-week low. The August PPI report reaffirmed Fed rate-hike bets and boosted the US Dollar on Thursday, which weighed heavily on the pair. However, hawkish RBA expectations limited losses for the Aussie as USD bulls now await the release of the US consumer inflation figures before placing fresh bets.

USD/JPY holds lower ground toward 154.00; looks to US CPI

USD/JPY holds lower ground toward 154.00 in the Asian session on Friday after hot Japanese PPI data bolster a more hawkish BoJ repricing and provide fresh impetus to the Japanese Yen. However, the downside appears capped as the US Dollar preserves overnight gains ahead of the latest US consumer inflation data.

Gold: Gains remain capped by $4,400

Gold regains composure and trades with decent gains on Friday, managing to refocus attention on the $4,440 mark per ounce troy. Therefore, the precious metal reverses Thursday’s decline as the US Dollar alternates gains with losses at the end of the week.

Ripple Price Forecast: XRP extends decline as returning ETF inflows fail to lift outlook

Ripple (XRP) falls below $1.33 on Friday, marking the third consecutive day of declines. The token continues to track the broader cryptocurrency market downturn, with investors closely monitoring heightened macroeconomic uncertainty ahead of the United States (US) Consumer Price Index (CPI) release and next week’s Federal Reserve (Fed) monetary policy decision.

Weekly focus – The hawks set the tone

Risky assets came under pressure this week as energy prices kept creeping higher and the ECB surprised the markets with a hawkish tone. The price of Brent crude touched USD 110 per barrel on Thursday night, highest since mid-May, as news emerged that the Yemeni Houthis had reached control of key port cities and islands near the Bab el-Mandeb strait.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.