Search ForexCrunch
  • Gold prices waver in a small range while trying not to follow the previous two-day fall.
  • US House got the votes to fast-track President Biden’s $1.9 trillion fiscal stimulus.
  • Upbeat data, vaccine news and an absence of market frenzy also add to the market optimism.
  • Cautious sentiment ahead of the key data/events, amid a light calendar, probe momentum traders.

Gold stays early around $1,833 during Thursday’s Asian trading session. In doing so, the white metal snaps the previous two days’ downside but fails to print major recovery amid a lack of major data/events. However, the recent news concerning US President Joe Biden’s $1.9 trillion covid relief package offered extra incentives to the risk-takers, which in turn favored the bullion.

US stimulus on the way…

With the US House Democrats gaining enough votes to fast-track President Biden’s optimistic stimulus, the global market remains positive of recovery in 2021. It should be noted that a series of Fed policymakers and US Treasury Secretary Janet Yellen also pushed for the much-awaited aid package off-late.

Read: US House has thevotes to pass budget plan, fast-tracking Biden’s $1.9tln covid relief package

Upbeat developments concerning the coronavirus (COVID-19) vaccine, better than forecast data from the US and Europe, as well as ex-ECB President Mario Draghi’s likely Italian leadership, also contribute to the risk-on mood.

Even so, Wall Street seems to fear further trading restrictions after the latest retail rush while also portraying the pre-NFP trading lull. That said, S&P 500 Futures copies the move and wavers around 3,830 whereas the US 10-year Treasury yields stay strong near the highest levels since December 2020.

Moving on, the “Super Thursday” from the Bank of England and further news over the US relief package, as well as covid vaccine, can entertain gold traders. However, a lack of major moves before Friday can be experienced.

Technical analysis

Sustained trading below $1,830 will confirm short-term “double-top” around $1,875-76, which in turn should drag gold prices to an ascending trend line from November, near $1,817 now.