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  • Gold remains depressed around one-week low amid a quiet trading session.
  • Yellen’s commitment to market-determined USD value battled stimulus-backed likely weakness of the greenback.
  • Virus infections, death toll improve but fears of the pandemic loom on risks, S&P 500 Futures nurse losses.
  • China data can entertain traders amid US off, risk catalysts keep the driver’s seat.

Gold prices stays heavy near $1,820, recently dropped to $1,804, during the initial Asian session on Monday. The yellow metal declined heavily on Friday as the market’s risk-off mood favored the US dollar. However, a lack of major updates during the weekend and recently mixed catalysts trouble the yellow metal sellers off-late.

S&P 500 Futures consolidate recent losses…

Chatters surrounding the incoming Treasury Secretary Janet Yellen’s likely favor to the market-determined US dollar value and position to be the only official to speak on the greenback recently probed gold sellers. It should be noted that doubts over US President-elect Joe Biden’s covid aid package’s acceptance and ability to propel the markets earlier weighed on risks.

Read: Yellen to affirm a commitment to market-determined dollar value

Also favoring the bullion could be the latest improvement in the coronavirus (COVID-19) cases from the UK as well as hopes that the vaccines can also cure the virus variants found in Britain and South Africa. It’s worth mentioning that London is tightening the lockdown restrictions starting from Today as virus conditions worsened in the nation.

Read: New UK covid stats lower despite variant, vaccine rolled out

Elsewhere, doubts over China’s ability to overcome the pandemic and virus woes in Japan are extra catalysts that try to entertain market players during a dull session. The market moves are also confined due to the US holiday.

Amid these plays, S&P 500 Futures bounce off the lowest in two weeks while snapping a two-day losing streak, currently up 0.30% to 3,757.12.

Although risk headlines remain as the key driver for gold, China’s headline Q4 GDP, Retail Sales and Industrial Production figures can also direct short-term moves of the commodity. While the GDP figures are likely to jump from 4.9% to 6.1% YoY, the quarterly numbers could also improve to 3.2% versus 2.7% prior. Further, Retail Sales is also likely to rise from 5.0% previous readouts to 5.5% whereas Industrial Production may ease to 6.9% from 7.0% marked in November.

Read: Chinese Q4 GDP Preview: Economic growth back to pre-pandemic levels?

Technical analysis

A clear downside break of 200-day SMA can help gold sellers to conquer an ascending support line from March 2020, currently near $1,825. It should be noted that the last week’s top near $1,865 will challenge the commodity’s recovery moves past-200-day SMA level of $1,846.