TEHRAN (Iran News) – Gold prices moved sideways edging slightly higher following the news over the long weekend that President Trump had signed the US government stimulus bill. The Greenback rose slightly in tandem with yields as riskier assets rose. The House passed a new bill that would increase the stimulus checks from $600 per person to $2,000 per person.
Technical analysis
Gold prices moved higher but continue to trade in a tight range. Support is near the 10-day moving average near 1,872, with resistance seen near the December highs at 1,906. The 10-day moving average crossed above the 50-day moving average which means a medium-term uptrend is now in place. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. Medium-term momentum is positive to neutral as the MACD (moving average convergence divergence) histogram prints in the black with a flattening trajectory, which points to consolidation.
The House Votes to Increase Federal Payments
The House voted to increase the second round of federal direct payments to $2,000 as Democrats embrace President Donald Trump’s calls to put more money in Americans’ pockets. The measure would boost the stimulus checks in the year-end coronavirus relief and government funding package to $2,000 from $600.
“Gold Price Prediction – Prices Rise on Moving Average Crossover”
Gold price 2021 outlook
Despite the liquidity flooding the financial markets, the inflation outlook in major economies remains subdued and major central banks voiced their commitment to keeping their policies extremely loose until they see a convincing increase in price pressures. This suggests that investors will not give up on gold in the near future.
On the other hand, a return to normality with mass COVID-19 vaccinations could make risk-sensitive assets more attractive, especially in the second half of 2021, and dampen the demand for the yellow metal.
Overall, the gold price outlook remains bullish with the rate of increase in prices softening when compared to 2020.
- source : FXEMPIRE
