Points To Keep In Mind While Trading in Yellow Metal!
The U.S. dollar surges on Monday as traders are eagerly waiting for the new updates of additional fiscal stimulus. On the other side, U.S. stocks open lower amid increasing Covid infections over the globe. According to the latest updates from the Reuters, the U.S is now averaging 3,000 deaths and 245,000 new cases on a daily basis. In addition, Europe, U.K. and China are also fighting with a new highly-transmissible strain infection.
Investors will become calm only when newly elected President Joe Biden will share updates on the Covid – relief package, which he said will be “in the trillions of dollars”. The detailed report of it is expected to come up within this week only.
Side by side, political uncertainties in Washington DC is also responsible for the severe volatility in the U.S. dollar. Here a talk to use the 25th amendment continues to force Trump out a few days early. The House may consider an article or two of impeachment but Senate is facing some complexities over it. The chairman of the U.S. House of Representatives’ Rules Committee expects the article of impeachment against President Donald Trump to get to the House floor for a vote on Wednesday and predicted it will pass too.
XAU/USD (Gold): Gold starts a new week on a negative note and remains well supported below $1,850 mark. The pair made intraday high at $1,856 and low at $1,817 mark. A sustained close below $1,827 will check key supports like $1,807, $1,800, $1,790 and $1,782 mark respectively. Alternatively, reversal from this will tests key resistances at $1,853, $1,865, $1,872, $1,885 and $1,902 mark respectively.
Take a look and do trade wisely!