flag-gb flag-my flag-zh flag-id flag-th flag-vi

Gold remains under pressure due to strong dollar and high yields of US Treasuries

On Monday, gold continues to decline due to strengthening dollar and positive dynamics of the movement of US Treasuries. Gold finished trading on Friday with a fall of more than 4%.

 

Treasury yields remain robust amid expectations of increased federal spending to aid the COVID-19-stricken economy. US President-elect Joe Biden has already pledged "trillions" of additional aid costs for the COVID-19 pandemic, thanks to full Democratic control of both houses of Congress. Biden noted that the labor market data released on Friday showed that Americans need more urgent help right now. Proposals for the allocation of new assistance to the economy will be presented this week.

 

Meanwhile, Democrats continue to increase pressure on the White House administration to remove Trump from power ahead of schedule due to the storming of the Capitol. House Speaker Nancy Pelosi has called on Vice President Mike Pence and the cabinet to remove incumbent President Donald Trump from office pending impeachment.

 

There is no important news on the economic calendar today. The main attention of investors will be focused on political events and the dynamics of the movement of US Treasury bonds.

 

ECB President Christine Lagarde (Wednesday) and Fed Chairman Jerome Powell (Thursday) are expected to speak at an online conference later this week.

 

On the chart, the price tested a fairly strong support level at 1824.00. The price bounced up. In the short term, we are waiting for the development of a rollback movement in the direction of the level of 1862.00. At this level, the price can turn down again.

 

  • Resistance levels: 1862.00, 1890.00, 1915.00.

 

  • Support levels: 1824.00, 1810.00, 1780.00.

 

The main scenario is growth to 1862.00 and a downward reversal.

 

An alternative scenario is a breakdown of resistance at 1862.00 and growth to 1890.00.

 

The current fundamental outlook is moderately negative. We consider shorts from the level of 1862.00.

Latest news

DEPOSIT BONUS 200%: PROLONGED TILL 04 JANUARY 2021!

2020-12-04 08:57:41

Only from November 02nd, 2020, to January 04th, 2021, Deposit Bonus 200% is available for all FortFS clients! Use the advantage to engage for the unique offer within a limited period: activate the deposit bonus and get up to 200% on the deposit amount on your trading account! How to get a Deposit Bonus of […]

No Deposit Bonus 100 USD – available for 3 days only!

2020-11-23 08:44:40

Only from 23 to 25 of November, the largest no deposit bonus 100 USD is available for all Forex traders! πŸ† Bonus details: 100 USD maximum withdrawal 75 lots of required trading turnover 2 weeks to try all of the trading conditions Available for cent accounts πŸ“ How to get the bonus: 1) Register an […]