Spot gold pressures the $1,820 support as US dollar strengthens

January 12, 2021 - 2 weeks ago
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The precious yellow metal was once again under pressure as the US Dollar strengthened on Monday and fell to a fresh six-week low of $1,816, also noting a critical support level at $1,820.

However, from the rebound, this level at present appears to be supported by initial demand.

Looking forward, U.S. Federal Reserve Chairman Jerome Powell is scheduled to speak on Thursday (Friday morning (Sydney time)).

President-elect Joe Biden has signalled that sending out $2,000 checks for most Americans as coronavirus relief will be one of his orders of business after he takes office on Jan. 20.

Biden has also said he plans to push out at least two more comprehensive stimulus packages.

Viewing the technical standpoint, the Relative Strength Index (RSI) 3-day ‘lookback’ indicator currently in oversold territory, while the Moving Average Convergence Divergence (MACD), supports a negative signal.

With the downside target challenged at $1,820, a New York close beneath this level could ignite a move to the region of $1,765-80.

Little resistance is seen until $1,868-78.

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