- Gold remains in the choppy range below $1,889 immediate resistance.
- Trump’s take on stimulus, vaccine hopes fail to renew precious metal buying.
- A light calendar awaits US VP faceoff for fresh clues.
Gold prices lack momentum below $1,900, currently around $1,888, during the initial Asian session on Thursday. The precious metal marked recovery from $1,873 the previous day but failed to regain the $1,900 threshold, with the latest upside attempts capped by $1,889.
US President Donald Trump’s U-turn on stimulus, after calling the aid package talks off, failed to recall the gold buyers. Also in the list were the US Fed policymakers’ remarks, as per the minutes of the latest meeting, anticipating an economic recovery while assuming the availability of fiscal help.
Trump’s another attempt to renew market sentiment…
In his latest tweet message, rather a video, the US leader conveyed that he feels perfect while also citing possibilities of getting the coronavirus (COVID-19) vaccine just after the election in November. The White House Chief of Staff Mark Meadows’ mentioning of Trump’s readiness to consider the Democratic counterproposal, if House Speaker Nancy Pelosi respects the administration’s position, also signaled the Republican leaders’ eagerness to restore trading sentiment.
It’s worth mentioning that US President Trump unveiled plans, on Wednesday, to offer pay-check protection worth $135 billion, help for airlines for around $25 billion and a standalone bill of $1200 stimulus checks for individuals after rejecting the Democratic push for over $2.0 trillion on Tuesday.
Although Trump’s recent efforts to renew market sentiment favored Wall Street to recover the previous losses, also helping S&P 500 Futures to print 0.13% gains, bulls remain cautious amid mixed feelings. The reason could be traced from the fears of increasing COVID-19 cases and likely national lockdowns in Europe and the UK. Also challenging the mood could be Europe’s steel tariffs on China, Taiwan and Indonesia, as well as British criticism of Beijing’s treatment to Uighur Muslims.
Looking forward, gold traders will keep eyes on the US Vice Presidential (VP) Debate, at 01:00 GMT, for immediate direction. The faceoff between the current VP Mike Pence for the Republicans and Senator Kamala Harris for the Democrats will be the only one of its kind ahead of the 2020 US Presidential Election. While the Republicans are likely to gain control in this event, due to Pence’s debate abilities, market favorite Democrats may not easily accept defeat and make the moves interesting.
Read: VP Debate Preview: Preventing a landslide Trump loss? Pence may win Harris, narrowing the race
Technical analysis
While $1,889 and the $1,900 round-figure offer immediate resistance, a two-month-old falling trend line near $1,920 adds to the upside barriers for the yellow metal. Alternatively, the September month’s low around $1,848 can lure the sellers below the intraday bottom surrounding $1,873.
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