- Gold on a roller-coaster after hitting fresh record highs.
- Dollar comeback propels the correction in Gold.
- Eyes on US data, stimulus talks and virus stats
Gold (XAU/USD) has been on a roller coaster ride this Tuesday, now consolidating the rebound from the daily lows near the $1910 region.
The spot, currently, sheds 0.55% to trade at $1932, having stalled the renewed uptick near $1935. The price hit a new all-time high in the Asian trades at $1981.34 before correcting sharply to $1933 levels, mainly driven by a broad-based US dollar rebound across the board.
The greenback stalled its recent downtrend and reversed a part of its losses heading into the FOMC policy decision due on Wednesday. Further, the optimism over the US stimulus underpinned the dollar recovery.
The US currency saw a fresh leg higher in early Europe, which once again triggered the corrective pullback in the bright metal, as the rates quickly eroded another $30 to test the $1900 level.
Despite the wild swings, the sentiment remains in favor of the XAU bulls amid an unprecedented level of monetary and fiscal stimulus deployed globally. Meanwhile, the dovish Fed expectations and negative real rates will likely keep the dollar’s recovery limited, which implies that gold’s north run remains intact in the near-term.
The immediate focus now shifts towards the US Consumer Confidence data, coronavirus stats and the impending stimulus talks.
Gold Technical levels
The psychological $1950 level poses an immediate threat to the bulls, above which the record highs could be tested. To the downside, the $1900 support is the level to beat for the bears.
Gold Additional levels