Prices for the precious metal, GOLD, closed at 1,873.38, after placing a high of 1,900.13, and a low of 1,869.05. In an early trading session on Monday, GOLD prices moved higher and posted gains on the back of the weak US dollar; however, the gains were not long-lived, as the risk sentiment returned in the market after US President Donald Trump signed the long-awaited pandemic aid bill. The gold price advanced on Monday and reached the 1,900 level; but it could not surpass this level and dropped down to 1,870 again. US President Donald Trump threatened to block a massive pandemic aid and spending package if Congress did not boost the stimulus payments to the people from $ 600 to $ 2,000 and cut other spending. However, on Sunday, he backed down from his demands, as a government shutdown was imminent.

US Democratic lawmakers have long wanted $ 2,000 relief checks and used the rare point of agreement with Trump to advance the proposal or to put Republicans on record against it in a vote on Monday, with less than one month left before Trump leaves office.

On Monday, the Democratic-led US House of Representatives voted 275 to 134, thereby approving a CASH Act in line with President Donald Trump’s demand for $ 2,000 coronavirus relief checks. The stimulus measure was headed towards an uncertain future in the Republican-controlled Senate. This legislation came a day after Donald Trump signed a sweeping coronavirus relief bill into law on Sunday evening. The bill was negotiated on a bipartisan basis that authorized the checks of up to $600 each for qualifying adults and children.

The CASH Act, short for Caring for Americans with Supplemental Help Act, means that, according to the law that has just been signed, each eligible adult and child will receive $ 2,000 rather than the $ 600 that was originally approved. After signing the bill on Sunday, Trump began pressuring Congress to approve the larger $ 2,000 payments quickly.

After Trump signed the bill, the GOLD price increased, as the bill will be inflationary to support the gold prices in the future. However, the rise in the GOLD prices reversed after Wall Street’s main indexes touched record highs on Monday.

The risk sentiment was also supported by the issuance of the US stimulus package that dented the gains in the yellow metal in the late trading session. Meanwhile, the risk sentiment in the global economy was also supported by the vaccine rollout. The EU has officially launched its mass vaccination program against the coronavirus, with the intention of making shots available to all its adult population by the end of 2021.

This program was followed by the rising number of cases of a new variant of the coronavirus in eight European countries; it was the same variant that was first detected in the UK. The news that the vaccination level against coronavirus will be increased added to the risk sentiment and dragged the GOLD prices down on Monday. In the absence of any macroeconomic event, along with the holiday-thinned trading, the GOLD prices remained depressed on Monday.

Daily Technical Levels:
Support               Resistance
1,863.39              1,898.39
1,856.22              1,916.22
1,838.39              1,928.39
Pivot Point:        1,886.22

The technical side of the market remains mostly unchanged, as the GOLD prices are trading bullishly at the 1,878 level and facing immediate resistance at the 1,899 level. On the lower side, the support remains at around 1,870, and violation of this level could extend the selling bias until the next support area of 1,859. The MACD and RSI support a selling bias; thus, we can expect GOLD to trade bearishly below 1,870 and bullishly above the same level today. Good luck!