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 flirts with three-day lows near 1.1570

EUR/USD resumes its march south on Thursday, revisting the 1.1570 region, or three-day lows, ahead of the opening bell in Asia. The intense sell-off in the pair comes in response to the solid performance of the US Dollar amid the still unresolved crisis in the Middle East. Moving forward, investors are expected to shift their focus to the release of the US NFP on Friday.

GBP/USD stays offered near 1.3340

GBP/USD fades Wednesday’s uptick and trades with decent losses in the 1.3340 zone in the latter part of Thursday’s session. Cable’s weakness, alongside the rest of the risk complex, follows the strong performance of the Greenback amid intense geopolitical jitters.

Gold: further weakness could challenge $5,000

Gold comes under fresh selling pressure on Thursday, slipping back below the $5,100 mark per troy ounce. Persistent strength in the US Dollar (USD) is preventing the yellow metal from building a meaningful recovery, even as markets remain risk-averse amid the deepening conflict in the Middle East.

XRP rises as crypto market steadies despite Middle East war

Ripple (XRP) continues to demonstrate notable resilience as the cryptocurrency market navigates the persistent war in the Middle East after the United States (US) and Israel attacked Iran on Saturday.

Two PMIs, two Chinas

China’s economic data are often treated with a degree of caution by global investors. The challenge is not necessarily that the numbers are incorrect, but that they can describe very different parts of a vast and complex economy. Nowhere is that more evident than in China’s PMIs.