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  • Gold keeps recovery moves from intraday low of $1,839.68.
  • Brokers’ restrictions on retail trading, China tensions weigh on risks amid economic fears.
  • Vaccine hopes, stimulus expectations and light calendar fail to entertain traders.

Gold prices pick up bids around $1,845 during the early Friday’s Asian session. While the bullion recently bounced off intraday low, it keeps trading in a small range below $1,845-46 off-late.

In case of searching for clues, traders may be less successful as the economic calendar is currently empty for Asia after Japan and Australia released a few data that couldn’t move the markets. It should be noted that the risks are also consolidating after the previous day’s volatile trading.

Even so, updates concerning the Gamestop saga and chatters over likely currency war join vaccine updates to offer intermediate moves. Recently, the US House Financial Services Committee is up for a hearing on short selling and online trading platforms while some more brokers joined the line of Robinhood to tame the volatility and speculations.

US Treasury Secretary Janet Yellen’s like for weaker US dollar is indicating a currency war, signaled by Bloomberg, which in turn weigh on the risks. Though the coronavirus (COVID-19) vaccinations are on the spike and few more drug announcements, latest from Novavax, keep the markets hopeful.

The China tensions are again on the table as Beijing warns Vietnam of a war if it keeps searching for independence. On the other hand, surprisingly, US Treasury’s signal to delay the ban on American investments for Chinese firms with alleged military ties seems to favor the mood.

Against this backdrop, S&P 500 Futures mark 0.20% intraday loss while stocks in Japan and Australia trade mixed by press time.

Given the recently flashed market-negative signals from the US, via Fed and GDP, the gold traders are likely to remain depressed unless hearing a major positive from the American Congress, relating to President Joe Biden’s stimulus.

Technical analysis

An upward sloping trend line from January 18, currently around $1,840 guards the quote’s immediate downside while 21-day SMA near $1,867 guards immediate advances.