Illustration photo of Gold Price H4 Chart from dailyfx.com
Gold prices return to $1845 as risk decreases after the protests in the U.S. Capitol. The country’s economic stimulus is expected to revive and generate a favorable market outlook. However, there are four factors that may affect the market: the Democrats plan to impeach President Trump, COVID-19 pandemic, the coronavirus vaccine, and the China and United States trade disputes.
Incoming President Biden has called for immediate further economic stimulus and pressure is exerted on the policy by latest U.S. employment data.
Kshitij Purohit, chief commodity and currency analyst at CapitalVia Global Research, mentioned that a sell-off in gold was prompted by rising U.S. dollar index. “In the short term, the stock market will put pressure on the price of gold, the dollar will continue to rebound, and investors will start to make profits,” he said.
Gold bears are in the mid-December lows of $1820 with a threshold of $1800, currently falling below the 200-day moving average of around $1841 and will present a clear downward breakthrough. At the same time, the 100-day moving average close to $1890 will become an important upside obstacle.
As of 8:27 a.m. (GMT+8), gold price fell 0.31% to $1844.20.
FOLLOWME XAU/USD Overall Sentiment (As of 10:18 a.m., Jan 11, 2021)
Short - 48.84%
Long - 51.16%