Gold this week opened the Asian session with deepened losses, recording a fresh intraday low of $1,818.70/ounce. The decline is mainly attributed
to the dollar's rally.To get more news about
WikiFX, you can visit wikifx official website.
President-elect Joe Biden recently revealed a $1.9 trillion package
titled American Rescue Plan, which included provisions delivering aid to
American families, businesses and communities, and focused on vaccine
production and delivery.
The DXY, instead of shrinking, jumped to 90.76 on Biden's plan,
deepening the losses in gold prices. The market has long geared up for
the stimulus plan that comes belatedly after months of negotiations.
Such numbness to predictable risks is the source of the enduring
pressures on gold.
Retail sales declined by 0.7% in December, said the US Commerce
Department. Demands for haven currencies have been increasing amid the
economic impacts of the current pandemic. Thus the DXY is expected to
gain 0.7% this week, compared to the earlier 0.50% growth.
“The market is sorting through the fallout of stimulus, inflation
worries, and a US dollar rebound. It will take some time before gold
starts to climb again,” said Market strategist Adam Button.
“We could go down below $1,800 if the US dollar index keeps going up,” said Market strategist Phillip Streible.
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