- Gold prices seesaw while consolidating Monday’s losses.
- US election results put Joe Biden on the driver’s seat, American Congress inches closer to the covid stimulus.
- Virus resurgence battle vaccine hopes, mixed headlines on Brexit add to the traders’ confusion.
- S&P 500 Futures rise 0.10% after mixed closing of Wall Street benchmarks.
Gold eases from $1,830 to $1,828.30 during the early Asian trading on Tuesday. The yellow metal dropped to the lowest in two weeks the previous day before bouncing off $1,819. While challenges to the risks probe the bullion buyers from cheering the US dollar weakness, the recent headlines have been mixed and confuse the traders, which in turn portray no major moves or a volatile session off-late.
US election results add to the long watch-list…
US President-elect Joe Biden recently won Electoral College and claimed his victory over the current President Donald Trump by securing over 270 votes needed. While the news suggests more stimulus and market optimism, it was widely anticipated.
Elsewhere, the fears of the new variant of the coronavirus (COVID-19), highlighted by the UK, joins fresh local lockdowns in the US and Europe. London and Ireland are also inching closer to the strictest activity restrictions amid the virus resurgence. Though, the mood couldn’t be spoiled much as the vaccines have arrived in the US, Canada and the UK.
It’s worth mentioning that the uncertainty over Brexit, as well as US covid stimulus, adds a burden onto the market sentiment.
Amid these plays, S&P 500 Futures remain mildly bid while Australia’s ASX 200 drop 0.15% by press time.
Moving on, China’s November’s data dump can offer immediate directions. However, major attention will be given to the risk catalysts and the pre-Fed cautious trading is likely to prevail.
Technical analysis
A sustained downside break of 10-day SMA, currently near $1,842, directs gold prices towards the late-November highs around $1,818/17 before challenging the $1,800 threshold and the previous month’s low of $1,764.60. Meanwhile, the 50-day SMA level of $1,873 becomes a tough nut to crack for gold buyers.
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