Where Did You Gold? –Bulls Reappears to Elevate Price Above $1,710, Are There More Cards Up Their Sleeves?

After a struggle with the bears, the bulls managed to break through and surged upwards. Their journey took them past $1,710 before they retreated to take a breather as the price has been trending sideways. Presently, it stands at $1.714.50.

The Relative Strength Index stands at 53, and indicates a small buyers’ appetite, as evidenced by the climbing RSI, which moved up from 32. At the time of writing, the price of spot gold is $1,721.67.

However, for the bulls to truly mark their stay, they need to overcome resistance above the November 2020 low, which is near $1,765, according to analyst Anil Panchal of FX Street. 

Source: Yahoo Finance

Taking a look at the docket today, the U.S. House is hours away from taking a final vote on the $1.9 trillion stimulus package. Recently, the Organisation for Economic Co-operation and Development (OECD) forecasts that the stimulus package will ‘turbocharge economic recovery’, as reported by Bloomberg. The OECD has increased its 2021 world growth forecast by 1.4% and boosted its prediction for the U.S. to 6.5%. It is also forecasting the U.K. economy to expand by 5.1% in 2021, and 4.7% in 2022.

The closely watched 10-year U.S. Treasury Yields also eased back and ended the day at 1.54%, after rising above 1.6% earlier this week. Meanwhile, traders would most likely be processing the latest results of Consumer Price Index (CPI) from China and U.S., with the latter being forecasted to increase 0.4% in February and 1.7% annually.

With the gold bulls taking a breather and interesting items in the docket, what would the coming days herald for the yellow metal? As always, let’s watch this space.

XAU/USD (as of Mar 10, 2021, 9.15 a.m., GMT +8) - $1,714.50

FOLLOWME XAU/USD User Sentiment (as of Mar 10, 2021 at 9.55 a.m.)

Short – 51.28%

Long – 48.72%