- Gold prices extend recovery moves from $1,871 amid risk-on mood.
- US House passes Trump-signed covid aid package, voting in the Senate will be the key.
- Light calendar, holiday-thinned trading restricts market moves.
Gold takes the bids near $1,880 during Tuesday’s Asian session. In doing so, the yellow metal stretches the latest corrective pullback from $1,871 while trying to defy the previous day’s downbeat performance.
Behind the moves is the market optimism emanating from the US coronavirus (COVID-19) aid package news. Following US President Donald Trump’s signing of the much-awaited stimulus, the House passed the bill containing Trump’s demand of $2,000 paycheck. The bill heads to the Senate, up for Tuesday, where the Republicans may block the road to success while citing the anticipated widening of the budget deficit.
Not everything signed by President Trump crossed the House on Tuesday as policymakers voted 322-to-87 to override one of Mr. Trump’s vetoes, underscoring the sweeping popularity of the military legislation, which authorizes a pay raise for the nation’s troops, said The New York Times.
It’s worth mentioning that the Aussie-China tussle, COVID-19 upddates and expected recovery in the US economic growth for 2021, due to the passage of the aid package, also contribute to the recent market moves despite holiday mood restricting the momentum.
Against this backdrop, Wall Street benchmarks refreshed record tops while S&P 500 Futures print mild gains above 3,700 by press time.
Looking forward, the Senate’s performance on the US stimulus will be the key for short-term market direction amid a lack of major data/events.
Technical analysis
Unless providing a daily closing below an ascending trend line from November 30, a $1,878 now, gold prices eye the $1,900 threshold.
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 stays in positive territory above 1.0850 after US data
EUR/USD clings to modest daily gains above 1.0850 in the second half of the day on Friday. The improving risk mood makes it difficult for the US Dollar to hold its ground after PCE inflation data, helping the pair edge higher ahead of the weekend.
GBP/USD stabilizes above 1.2850 as risk mood improves
GBP/USD maintains recovery momentum and fluctuates above 1.2850 in the American session on Friday. The positive shift seen in risk mood doesn't allow the US Dollar to preserve its strength and supports the pair.
Gold rebounds above $2,380 as US yields stretch lower
Following a quiet European session, Gold gathers bullish momentum and trades decisively higher on the day above $2,380. The benchmark 10-year US Treasury bond yield loses more than 1% on the day after US PCE inflation data, fuelling XAU/USD's upside.
Avalanche price sets for a rally following retest of key support level
Avalanche (AVAX) price bounced off the $26.34 support level to trade at $27.95 as of Friday. Growing on-chain development activity indicates a potential bullish move in the coming days.
The election, Trump's Dollar policy, and the future of the Yen
After an assassination attempt on former President Donald Trump and drop out of President Biden, Kamala Harris has been endorsed as the Democratic candidate to compete against Trump in the upcoming November US presidential election.