Gold Price Analysis: XAU/USD picks up bids above $1,900 with eyes on US NFP, stimulus

• Gold prices snap two-day-losing streak but lacks momentum strength.
• US policymakers push for Trump impeachment, Sino-American tussle continues.
• Democratic hint for $2,000 paychecks eyed, US December jobs report also in focus.

Having dropped for the last two consecutive days, gold prices rise to $1,917 during the early Asian session on Friday. The yellow metal had to bear the burden of US dollar advances and the recovery in the Treasury yields off-late. However, expected coronavirus (COVID-19) stimulus from the US, due to the Democratic victory in the Georgia Senate race, coupled with vaccine news, keep the buyers hopeful.

Although US Vice President Mike Pence is believed to try saving US President Donald  Trump for his inciting of supporters to rock Capitol Hill, many policymakers in the American Congress want immediate resignation from Trump. It is needless to say that the list includes names like House Speaker Nancy Pelosi and Democratic Party Leader Chuck Schumer.

On the other hand, Reuters also came out with the news suggesting the Trump administration’s behind the curtain preparations for further sanctions on Chinese companies. Also important is news that the vaccinations are jumping in the UK and the US while covid numbers reach record top.

Even so, the Democratic victory in the US is favoring the aid package hopes and hence the Wall Street benchmarks keep refreshing record tops during the recent days. It should be noted that the Fed policymakers are cautiously optimistic for the second quarter of 2021 and favor the US 10-year Treasury yields to probe early 2021 tops while staying above 1.00%.

Against this backdrop, S&P 500 Futures stays mildly bid around 3,800 while stocks in Asia-Pacific track Wall Street’s gains even as virus woes challenge Aussie stocks.

Looking forward, monthly US employment numbers and any hints of Trump’s resignation as well as the Democratic Party’s clearance on $2,000 paycheck will be the key.

Read: Nonfarm Payrolls Preview: Long path to recover to be even longer

Technical analysis

A five-week-old ascending trend line joins 10-day SMA to restrict gold’s short-term downside around $1,908 ahead of the $1,900 round-figure. Alternatively, November’s high of $1,965 becomes the key resistance.