Gold Technical Analysis: Waiting for the USD to Weaken Again

Mahmoud Abdallah

Any dips in the price of gold will be buying opportunities, and the support levels at 1844, 1830 and 1810 are best suited to do so at the present time.

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For the third day in a row, gold is trying to rebound higher after its price collapse at the end of last week's trading. Gold's rise came amid strong expectations of more stimulus for the global economy in the face of the pandemic, leading the price to stabilize around the $1863 level. In addition to stimulus expectations, tensions have escalated between the United States and China, and cases of coronavirus have increased. The disturbing political situation in the US also contributed to the rise in gold.

Silver futures closed higher at $25,435 an ounce, while copper futures settled at $3.6055 a pound.

According to Johns Hopkins University, the total number of coronavirus cases in the world has exceeded 90.8 million, and the number of deaths has risen to more than 1.94 million.

Speaker of the US House of Representatives Nancy Pelosi urged Vice President Mike Pence to invoke the 25th Amendment to the Constitution and hold a cabinet vote to remove President Donald Trump from office, which the vice president refused to do.

In a letter late Tuesday to Pelosi, Pence cited Pelosi's own words regarding the 25th Amendment from just a few months ago, in which she said that we must be "[v]ery respectful of not making a judgmenet on the basis of a comment or bheavior that we don't like, but based on a medical condition."

The US House of Representatives is expected to vote on Wednesday to impeach President Trump.

House Speaker Nancy Pelosi said that the House of Representatives must act to impeach President Donald Trump because the country is going through "an unprecedented moment in history." Pelosi, who spoke on Tuesday on the eve of his second impeachment vote, said Trump should be charged with the "inflammatory attack" on the Capitol by some of his supporters a week ago. "I urge my fellow Republicans to open their eyes and ultimately hold this president to account," Pelosi told her House colleagues late on Tuesday. “The story of our country and the future of our democracy are at stake.”

Technical analysis of gold:

Any dips in the price of gold will be buying opportunities, and the support levels at 1844, 1830 and 1810 are best suited to do so at the present time. On the upside, breaching the $1900 psychological resistance will be important a move towards stronger bullish levels. In addition to the extent of investor risk appetite, gold will be affected today by the weakness of the US dollar, US inflation figures and the impeachment vote.

Gold chart

Mahmoud Abdallah
Mahmoud has been working fulltime in the Foreign Exchange markets for 12 years. Offers his analysis, articles and recommendations at the most renewed Arabic websites specialized in the global financial markets, and his experience gained a lot of interest among Arab traders. Works on providing technical analysis, market news, free signals and more with follow up for at least 12 hours a day, and aims to simplify forex trading and the concept of trading for his audience.

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