US Markets React: Gold gains, equities and dollar tumble on stimulus jitters
Gold reached $1918.58 on Monday its highest since last Tuesday and closed at $1904.18 up from the open of $1897.10 The precious metal has seen narrowing ranges since early last week as the legislative back and forth on the stimulus has elicited an ever weaker response from traders. The reaction remains focused on the negative economic impact if a deal fails but hemmed in by resistance at $1930 and $1955 and support at $1880 and $1850.
China's prime is optimal
Gold continues to range trade each side of $1900.00 an ounce in subdued range trading. Gold rose five dollars to $1904.50 an ounce overnight as equities fell but has since eased to $1900.50 an ounce as US equity futures rose in Asia. It is clear that gold is moving to nuances in other markets, and not on gold fundamentals alone. However, the ever-compressing ranges continue to form a triangle formation that suggests a massive breakout is coming, with a potential to move over $100 an ounce.
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