Gold prices were firm at the second trading session of the week.
The yellow metal is bouncing from its one-and-a-half-month low seen at the last trading session. Gold bugs are going long on hopes for further stimulus programs to boost economic recovery from COVID-19.
What you should know
At press time, Gold futures were up 0.38% at $1,836.80/ounce after hitting the lowest point since December 2 yesterday.
- Gold traders await statements from Secretary of the Treasury nominee, Janet Yellen, on U.S. stimulus programs and the U.S dollar during her Senate confirmation scheduled to hold today.
What they are saying
Stephen Innes, Chief Global Market Strategist at Axi, in a note to Nairametrics, gave insights to the yellow metal price movement and the odds of breaching above $1,860/ounce.
- “Gold prices recovered from lows yesterday before trade volumes dropped off, with markets closed in the US, and we ended up with a hammer candlestick.
- “Spot had fallen significantly earlier but found good support near $1800. If gold can break $1840 convincingly, keep an eye on $1860. The further upside from there might be a struggle if the US dollar continues to climb. Although some market participants may have turned bearish in the short-term, there could be an unexpected rally.”
What to expect
Present price actions in the precious metal market will be choppy this week. Gold traders in the coming days will monitor key geopolitical drivers such as the Treasury Secretary nominee Janet Yellen’s testimony, and US president-elect Biden’s inauguration.