- Summary:
- Gold price remains on the upside as testimony of incoming US Treasury Secretary that pushes for more stimulus keeps the US Dollar on the back foot.
Gold price remains range-bound, even as incoming US Treasury Secretary Janet Yellen provides testimony to the Senate Finance Committee. She is making a case for massive stimulus and investment to get the US economy back on track.
Yellen, who superintended over the Fed Reserve in the final years of the Obama Presidency, stressed that Congress needs to act big to provide support for the ailing economy. She is also committed to working towards a second coronavirus relief package. She also supports a progressive tax code, which echoes the sentiment of incoming US President Joe Biden on everyone paying their fair share of taxes.
Gold prices have maintained the bullish trend for the session and remain 0.22% higher.
Technical Outlook for XAUUSD
Gold prices continue to see the upside capped below the $1850 resistance. This scenario keeps gold prices range-bound between 1850.78 and 1821.55.
The position is very clear. Any upside move towards 1900.76 must take out the 1850.78 range ceiling as well as the 1881.99 resistance target that lies directly above it.
On the flip side, a decline below 1821.55 is needed for prices to aim for 1800.34, with 1788.90 and 1762.51 remaining firm as the next downside targets. Anything else other than these two scenarios keeps gold prices range-bound.
Gold Price (XAUUSD); Daily Chart
