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


Today last price 1604.55
Today Daily Change -12.51
Today Daily Change % -0.77
Today daily open 1617.06
Daily SMA20 1589.67
Daily SMA50 1585.78
Daily SMA100 1538.44
Daily SMA200 1506.95
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



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