- Gold prices struggle to keep the multi-year high around $1,820.
- US dollar index drops to the fresh low since March 10 as risk-on sentiment remains on the table.
- European leaders progress in unveiling 750 billion Euros of stimulus, pandemic numbers flash mixed signals.
- Updates of the aid package, virus and vaccine will be the key amid a light calendar.
Gold prices ease to $1,817.90, intraday low of $1,815.92, during the early Tuesday. Even so, the bullion remains near the highest levels since September 2011, $1,820.61, marked the previous day. While tracking the reasons, US dollar weakness becomes the key concern amid the present risk-on mood.
US dollar index (DXY) prints a three-day losing streak while declining 0.10% to 95.70. The greenback gauge versus the major currencies recently slumped to the lowest since the early-March as market’s risk-on sentiment kept the USD bulls out of the party.
While increasing odds of the coronavirus (COVID-19) vaccine and receding pandemic numbers from the US could be cited as risk-positive catalysts, hopes of further stimulus from Europe and America play their roles as the key factors. The European policymakers are finally close to 750 billion Euros of stimulus during the fifth day of negotiations. On the other hand, the US Senators are also rolling up their sleeves to haggle over the Republican-led $1.0 trillion aid package for which Democrats put a bid at $3.00 trillion, as per the Axios.
It’s worth mentioning that the RBA policymakers refrain from using additional stimulus confronts the Aussie government’s extension of income support measureshttps://www.fxstreet.com/news/australian-pm-morrison-jobkeeper-wage-subsidy-cut-to-1200-a-fortnight-split-into-two-tiers-202007210209 from October 2020 to December 2020. As per the latest measures, a wage subsidy of $1200 a fortnight for full-time workers and $750 for part-time workers will be extended.
As the European decision-makers have gone on a break and there are no major data/events to watch for, except for the virus updates from the US and Victoria (Australia), the bullion traders struggle to carry the previous bullish performance.
Against this backdrop, S&P 500 Futures stay mildly positive near 3,250 whereas the US 10-year Treasury yields seesaw near 0.61%. Further, stocks in Asia-Pacific are also bid and portray the risk-on sentiment.
Technical analysis
The bullish MACD joins the successful trading past-$1,815 to keep the bullion traders hopeful. As a result, the quote could remain direct to the north with the upper line of an immediate ascending channel, at $1,823.10, acting as nearby resistance. If at all the commodity manages to defy the channel formation and rise further, August 30, 2011 peak surrounding $1,840 will be in the spotlight. Alternatively, a downside break below $1,815 is less likely to recall the bears as the support line of the mentioned channel, currently around $1,813, could question further downside.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD retests daily lows near 1.0850 on softer US PPI
EUR/USD remains on the defensive against the backdrop of another positive day in the US Dollar, always amid intense tariff jitters and weaker-than-expected US Producer Prices in February.
Gold looks bid and trades close to $2,950
Gold extends its winning streak, moving toward the $2,950 mark after notching gains over the past two sessions. Heightened fears of an economic downturn, spurred by escalating trade tensions, have fueled a risk-off environment—further boosting the allure of the precious metal as a safe-haven asset.
GBP/USD remains offered near 1.2940 on USD buying
The continuation of the buying interest in the Greenback keeps the risk complex under pressure, motivating GBP/USD to recede to the 1.2940 region and reverse two consecutive days of gains for the time being.
Metaverse narrative stalls as price action fades, but on-chain data signals continuing accumulation
Metaverse tokens are cryptocurrencies associated with virtual worlds, digital economies, and immersive online experiences. Tokens like Sandbox, Decentraland, and Axie Infinity, three of the most prominent assets during the Metaverse boom of 2021, continue to face correction since they topped in early December.
Brexit revisited: Why closer UK-EU ties won’t lessen Britain’s squeezed public finances
The UK government desperately needs higher economic growth as it grapples with spending cuts and potential tax rises later this year. A reset of UK-EU economic ties would help, and sweeping changes are becoming more likely.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.