Gold: Steps back from two-week top to stay below $1,650

Despite refreshing two-week high the previous day, gold prices step back to $1,626 amid the Asian session on Friday. The bullion earlier cheered the broad US dollar weakness while paying a little heed to the risk-on sentiment. Though, coronavirus (COVID-19) remains in focus as the US dethrones China as the biggest victim.

The US dollar index slumped to the multi-day low on Thursday as the world’s largest economy is jostling with the pandemic outbreak. As per the New York Times, there are more than 81,000 cases in the US that makes it above China as far as the virus infections are concerned. Also weighing on the greenback could be the surge in Jobless Claims to over 3.0 million.

The US Senate passed a $2.0 bipartisan aid package to combat the virus on Thursday. The bill is now up at the door of the House from where it can reach the President’s desk and be the law.

Other than the US, the European leaders also agreed for a massive stimulus package while central banks in Australia and New Zealand kept infusing the markets while performing on the previously announced Quantitative Easing (QE).

While today’s voting in the House of Representatives may offer some drama considering the disappointment among the Democrats, the bill is less likely to find any major hurdles. It should also be noted that the Fed Chair Jerome Powell earlier signaled that the central bank still has major ammunition left or using.

Technical analysis

A daily closing beyond March 12 top surrounding $1,650/51 could recall $1,680 on the charts. Alternatively, $1,597 is the immediate support to watch during further weakness.