XAU/USD rebounds on US stimulus progress but not out of the woods yet

Gold Futures: Extra gains on the table

Traders added nearly 8K contracts to their open interest positions in gold futures markets at the beginning of the week, according to preliminary readings from CME Group. Volume, instead, extended the downtrend and dropped by around 21.3K contracts.

Monday’s positive price action in gold was amidst rising open interest, which remains supportive of extra gains in the very near-term. Against this, the precious metal still targets the 100-day SMA in the $1,880 level per ounce in the short-term horizon. Read more…

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Gold Price Forecast: XAU/USD rebounds on US stimulus progress but not out of the woods yet

Gold (XAU/USD) is attempting a minor bounce after falling over 1% to eleven-day lows at $1830 on Tuesday. The yellow metal slumped as the US dollar rallied hard on the macroeconomic divergence between the US and Euro area economies. The relative strength of the US economic recovery amid the coronavirus crisis drove the greenback broadly. The social media-driven retail-trade frenzy fizzled and weighed heavily on silver prices alongside gold. Markets also favored the US currency amid ongoing talks on fiscal stimulus.  

Wednesday’s pullback in gold can be mainly attributed to the progress on a likely US fiscal stimulus deal. The Senate voted 50 to 49 in a straight party-line decision in order to push through a $1.9 trillion aid package proposed by President Joe Biden. However, the covid vaccine-driven optimism could cap the recovery attempts in gold. Read more…

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Gold Price Analysis: XAU/USD to push toward $1900 on a break above $1875

Gold (XAU/USD) struggled to capitalize on the weekly bullish gap opening on Monday and remained capped near the $1875-76 resistance zone. A modest uptick in the US bond yields prompted some fresh selling around the yellow metal on Tuesday but concerns about COVID-19 vaccine supplies might help limit any further losses for the commodity, FXStreet’s Haresh Menghani reports.

Key quotes: “Concerns about the delay in COVID-19 vaccine supplies helped limit the downside. Moving ahead, the broader market risk sentiment will play a key role in influencing the intraday movement for the commodity. This, along with the US bond yields and the USD price dynamics, will also be looked upon for some meaningful trading opportunities.” Read more…