Gold struggles to cheer US dollar weakness


  • Gold is losing ground along with the US dollar. 
  • The US Senate is back on track to pass the fiscal stimulus bill. 
  • Coronavirus cases continue to rise and could keep markets from cheering the approval of stimulus bill. 

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. 

However, as per the latest reports, the Senate is back on track to pass the rescue package this Wednesday evening (Thursday morning in Asia). 

The fiscal stimulus bill has been in the making for at least four days now and may have been priced in by markets. The Dow Jones Industrial Average rose more 1,000 points on Tuesday and nearly 500 points on Wednesday. 

As a result, the passage of the stimulus bill in the Senate could be followed by "sell the fact" trade in the equity markets, more so, as the coronavirus outbreak is showing no signs of slowing down in the US, Japan and in European countries. In that case, gold may find haven bids. 

At press time, the futures on the S&P 500 are reporting a 0.6% drop. 

Technical levels

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

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD bounces after upbeat COVID-19 cure news

EUR/USD is trading above 1.13, rebounding from the lows. Gilead reported that its drug Remdesevir substantially reduces mortality among COVID-19 patients. The news boosted stocks and weighed on the dollar. US coronavirus statistics are due out.

EUR/USD News

GBP/USD recaptures 1.26 as the market mood improves

GBP/USD is trading above 1.26 as the market mood improves and the safe-haven dollar retreats. Investors are shrugging off Brexit concerns and focusing on hopes to cure coronavirus. US COVID-19 statistics are due out.

GBP/USD News

XAU/USD consolidates daily gains above $1,800

After advancing to its highest level since September of 2011 at $1,818 on Wednesday, the XAU/USD pair staged a correction and briefly dropped below $1,800 on Thursday.

Gold News

Cryptocurrencies: War for dominance hit the bedrock of the market

Bitcoin tried to regain market share and activated sales in the Altcoin segment. BTC/USD, ETH/USD and XRP/USD are looking for supports and a rebound to push them to new elative highs. The current compression on the XRP/USD chart could trigger an exploding movement.

Read more

WTI once again breaks $40 per barrel after trading lower in early EU trade

There has been quite the bounce in WTI since the EU session after some strong selling pressure during Thursday and overnight. Once again on Friday's session, the price has taken the USD 40 per barrel handle. 

Oil News

Forex MAJORS

Cryptocurrencies

Signatures