The gold price has rallied for a third-straight day as bullish traders try to get the uptrend back on track. Gold is seeing a boost from the tumbling U.S. dollar after a second government stimulus appeared to be close.
Gold’s recent downtrend was happening despite a fall in the dollar and this was a worry that prices could continue towards the $1700 levels. However, Democrats and Republicans in Congress have found some common ground on a stimulus package which US Treasury Secretary Steve Mnuchin says “will be signed by President Trump”.
Yesterday’s approval of a vaccine by the U.K. will put pressure on gold as other countries will follow and it’s likely that a large number of “vulnerable” age groups ill be immunised across developed economies by the end of January 2021. This will reduce the potential for any future stimulus and should help to reduce the global economic damage going forward.
Gold Price Technical Outlook
Gold has rallied back above the $1,800 support level and has given bullish traders hope that this could be a bottom for the near-term. The $1,863 level was a big support for the price of gold since August and this will be resistance for a move higher. A close back below $1,800 would put the bears back in charge for a push to $1,750. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.
XAUSUD Daily Chart