Gold price was trading at 1,723.94, down by 0.51% amid the heightened optimism on the fast recovery of the US economy. On Monday, the dollar index was up by 0.09% at 92.82.
The passing of the stimulus package, as well as progress of COVID-19 vaccinations in the country, has fuelled the positive sentiment among investors. In his first news conference, President Biden set an ambitious goal of 200 million jabs within 100 days. The proposed $3 trillion infrastructure package will further support the greenback; exerting additional pressure to gold price.
Nonetheless, the precious metal is finding support from the easing US treasury yields. The benchmark 10-year yields were down by 0.52% at 1.66. However, this is not far from the record-high of 1.75 hit in mid-March.
Gold Price Technical Outlook
On a 2-hour chart, gold price remains below the short-term exponential moving average of 50 days and the longer 200-day EMA. Besides, it is within a descending channel that has been in formation for about two weeks now. The price is likely to remain range-bound for several sessions.
Over the past two weeks, it has been trading within a range of between 1,721 and 1,747. If it manages to break out of the range’s resistance level, the next target will be 1,760. On the flip side, a move past 1,720 will see the bears test the psychological level of 1,700.
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Gold Chart
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