Gold prices have continued their amazing recovery and look set to post a 3rd straight day of gains after renewed talks of stimulus hit the markets. The recovery from 2-month lows follows renewed optimism about the passage of the $1.9trillion stimulus by the US Congress.
Stimulus hopes were renewed by comments made by Janet Yellen, US Treasury Secretary on Sunday. She had urged for action to pass the stimulus, saying she expected the stimulus to bring back full employment. The renewed stimulus hopes have put the greenback on the back foot once more, allows gold prices to stage a recovery that adds 0.86% to its price as of this Tuesday.
Technical Levels to Watch
Today’s upside move met resistance at the 1850.78 price mark, at its junction with the upper edge of the descending channel. Further upside depends on a break of this resistance, which then opens the door for bulls to target the 1869.39 and probably 1881.99 resistance targets.
On the flip side, a rejection at the current resistance could initiate a pullback that brings in 1821.55 into the picture, with 1800.34 and 1788.90 continuing their roles as potential support targets.
Gold Price (XAU/USD) Daily Chart