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.

EUR/USD falls to near 1.1600 due to persistent bearish bias

EUR/USD depreciates after registering modest gains in the previous session, trading around 1.1610 during the Asian hours on Thursday. The technical analysis of the daily chart suggests a persistent bearish bias as the EUR/USD pair remains within the descending channel pattern.

GBP/USD underperforms as UK faces stagflation risks amid Middle East war

The Pound Sterling trades lower against its major currency peers, is down 0.22% around 1.3340 against the US Dollar, during the Asian trade on Thursday. The British currency faces selling pressures amid fears that the United Kingdom economy could face stagflation risks due to higher energy prices, a situation in which inflation accelerates with economic growth and employment conditions remaining stagnant.

Gold buyers stay hopeful amid Middle East war, China growth woes

Gold is building on the previous rebound in Thursday’s Asian trades, testing offers once again at the $5,200 threshold. Deeper escalation of the Middle East war and dovish US Federal Reserve monetary policy outlook continue to support Gold.

Top Crypto Gainers: Decred, Zcash, and Dogecoin lead recovery as Bitcoin crosses $72,000

Bitcoin trades above $72,500 at press time on Thursday, holding its 6% gain from the previous day, contributing to a broader market recovery. The total cryptocurrency market capitalization stands at over $2.43 trillion as the broader market sentiment improves significantly.

First Venezuela, now Iran: The US-China energy war escalates

At first glance, the latest escalation involving the United States with both Iran and Venezuela looks like another chapter in a long-running geopolitical story. But viewed through a broader strategic lens, something else may be unfolding: Energy.

Bittensor extends recovery despite retail demand slump

Bittensor, a leading Artificial Intelligence token, is aging up above $190 at the time of writing on Wednesday. Steady price increases characterise the broader crypto market, with Bitcoin holding above $71,000 and Ethereum above $2,000.