Where Did You Gold? –Gold Bulls Have Been Halted, Price Trade in A Range
The bulls showed a burst of energy and rose to $1,737.50 and retreated thereafter. Presently, XAU/USD stands at $1,723.20, and the price is trading sideways. At the time of writing, it is slightly above its 50-day Simple Moving Average (SMA), which is denoted in purple below. The Relative Strength Index has been gradually moving upwards and currently stands at 62. At the time of writing, the price of spot gold is $1,724.
According to analyst Anil Panchal of FX Street, for the bulls to reemerge and solidify their position, they must overcome a key resistance at $1,765, which a confluence of November 2020 low and a two-month-old falling trend line.
Source: Yahoo Finance
Meanwhile, over in the markets, President Biden has signed the $1.9 trillion stimulus bill into law, ahead of time. In a prime-time address, he has also called for all American adults to receive vaccine access by May 1. In that address, the U.S. President also mentioned that come July 4, American may also look forward to celebrating the U.S. Independence Day in person, albeit in small groups.
It is indeed a feather in the new president’s cap, as he faced opposition from the Republicans in his endeavour to get the stimulus package approved. One of the concerns was how the massive stimulus would add to the existing U.S. debt, which is above $27 trillion. Data from Statista show that the U.S. had added more than $4.49 trillion of debt in the past year alone.
The latest initial jobless claims results also added a positive touch, as it came in at 712,000 against a forecast of 725,000. This would be the lowest level in four months, the New York Post reported. In the meantime, traders would be keeping an eye out for the U.S Michigan Consumer Sentiment results for the month of March.
In the vaccine space, Novavax’s vaccine has been found to be 96% effective against the original version of the coronavirus, marking another notch in the war to combat the virus. With things looking bright(er) in the U.S. and the vaccination font, has the world truly turned a corner, or is there more to it? The importance of the safe-haven gold depends on the perception of the world about a return to normal, so let’s watch what the coming days have in store for the gold bulls.
XAU/USD (as of Mar 12, 2021, 10.15 a.m., GMT +8) - $1,723.20
FOLLOWME XAU/USD User Sentiment (as of Mar 12, 2021 at 11.10 a.m.)
Short – 48.56%
Long – 51.44%
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