Gold continues to move down on Friday against the backdrop of the recovery of the dollar (dollar index + 0.06%) and growth in the yield of 10-year US government bonds.
Gold remains closely inversely correlated with the dollar, so as the dollar recovers, gold has come under pressure again. The focus of the market remains mainly on news from the US. Legislators continue to debate the new stimulus program. It is obvious that the process of adopting the bill may be delayed. On the eve of the Speaker of the House of Representatives Nancy Pelosi said that the bill should be passed by mid-March. Earlier, the Democrats were more optimistic in their statements and announced the possible adoption of the law as early as February.
There is no important news on the economic calendar today. The main reference point for gold will remain the US dollar and the dynamics of the yield of US Treasuries.
On the chart, we note a strong price rebound from the level of 1844.50. We are waiting for the continuation of the downward movement in the direction of the level of 1810.00.
The main scenario is a decline to 1810.00.
An alternative scenario is a recovery to 1844.50 from current levels.
The current fundamental background is moderately negative. We consider shorts on a pullback to 1835.00
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