Daily Brief, January 13 – Everything You Need to Know About Gold Today!
Arslan Butt • 2 min read
The GOLD prices closed at 1,854.45, after placing a high of 1,863.74, and a low of 1,836.83. After falling for four consecutive sessions, the GOLD prices rose on Tuesday, posting gains as the US dollar and Treasury Yields eased, while the prospects of higher inflation, driven by more US fiscal stimulus, provided further support for the metal.
The US Dollar Index (DXY) fell almost 0.3% against its rivals on Tuesday, while the 10-year US Treasury Yields fell to a session low of 1.146%. The US stocks opened higher on Tuesday, rebounding from the previous session’s losses, with investors looking for additional fiscal stimulus, amid continued political turmoil. The Dow Jones Industrial Average closed 0.3% down, and the S&P 500 closed 0.6% lower, while NASDAQ fell by 1.2%.
The United States lost more than 22,000 Americans to coronavirus last week, which was a second straight weekly record that brought the death toll to 375,000. The rising number of deaths and the associated economic damage prompted President-elect Joe Biden to promise further economic stimulus to the tune of trillions of dollars late last week. More details are expected to follow in a formal announcement on Thursday, and this has been supporting markets at their current elevated level.
Meanwhile, the House of Representatives introduced an impeachment article on Monday, accusing Trump of incitement of insurrection, on which they plan to vote on it this week. This came in after last week’s violent scenes on Capitol Hill that were encouraged by Trump.
Daily Technical Levels
Pivot Point: 1,848.00
GOLD is trading sideways in the area around 1,859, facing immediate resistance at the 1,863 level. On the lower side, GOLD may find support at the 1,849 level, and violation of this level could extend selling until 1,837. The 50 periods EMA suggests chances of a buying trend, but the double top resistance level is weighted at 1,863. Above the 1,863 level, the GOLD price could soar until the 1,892 mark. Good luck!
About the author
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.