Gold Price Analysis: XAU/USD prints three-day winning streak around $1,730 amid steady markets in Asia

• Gold stays firm at the weekly top, wavers around the peak off-late.
• Risks stabilize after initial positive reaction to US stimulus passage, downbeat Treasury yields.
• US Jobless Claims, President Biden’s speech will be the key.

Gold stays on the front foot, recently taking rounds to the weekly top near $1,727, amid Thursday’s Asian session. In doing so, the yellow metal cheers the US dollar weakness and the recent drop in the US 10-year Treasury yields. However, a lack of major data/events in Asia seems to test the bulls.

Bulls remain hopeful but catch a breather for now”¦

US House finally passed President Joe Biden’s $1.9 trillion coronavirus (COVID-19) fiscal relief plan on Wednesday. The same will go to President for a sign before becoming law on Friday. Although the even turns out to be the most optimistic one in recent times, bulls pay a little heed to the news as this was already priced in.

Also favoring the bulls could be the second consecutive daily fall by the US 10-year Treasury yields, recently by two basis points (bps) to 1.52%, as the US bond auction couldn’t match market pricing while the US stimulus passage added to the risk-on mood. Furthermore, chatters that US President Joe Biden also has a proposal of around $2.5 trillion infrastructure spending, to be made in April, add strength to the risk-on mood.

On the contrary, US Secretary of State Antony Blinken’s tough stand versus China and Iran seems to test the risks ahead of his first official trip that will begin on March 18.

These plays helped US equities but futures await more clues to extend the latest optimism.

As a result, today’s ECB and weekly US Jobless Claims should be watched closely ahead of US President Biden’s speech that could please the risk-takers and favor US dollar bears.

Technical analysis

Although a downward sloping trend line from August 2020, currently near $1,675, restricts the commodity’s short-term declines, the previous support line from January 18, 2021, currently around $1,735, followed by November 2020 bottom surrounding $1,765, challenge the gold buyers.