Gold eases from the 2-week high – Resistance at $1,878 is intact

January 22, 2021 - 1 month ago
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The precious yellow metal retreated from the 2-week highs on Thursday, with the key resistance remaining intact at $1,878.

With President Joe Biden now in the White House, he takes the reins of a national effort to vaccinate most Americans.

He has pledged to have the country administer 100 million doses of the vaccines within the first 100 days of his presidency.

He’s also proposed a $1.9 trillion stimulus package that could amount to a shot in the arm for the economy.

House Speaker Nancy Pelosi said on Thursday the chamber is ready to pass the bill in the first week of February.

Thursday’s action came after a better-than-expected reading on jobless claims.

The number of Americans filing new applications for unemployment benefits decreased modestly last week.

Initial claims for state unemployment benefits totalled a seasonally adjusted 900,000 for the week ended Jan. 16, compared to 926,000 in the prior week, the Labor Department said on Thursday.

Economists had forecasted 930,000 applications in the latest week.

Viewing the technical assessment, the Relative Strength Index (RSI) 3-day ‘lookback’ indicator now backs away from the overbought territory due to last night’s retreat.

The Moving Average Convergence Divergence (MACD) supports a negative signal but now needs to be monitored as the indicator heads towards the 0.00 axis.

While the resistance holds from $1,878, the bearish sentiment holds.

A New York close beneath $1,820 could ignite a move to the region of $1,765-80.

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