Gold Price Analysis: XAU/USD refreshes record high past-$1,870, eyes record high of $1,920
- Gold prices stay on the bids following latest pullback from $1,862.99.
- Uncertainty surrounding the US fiscal plan, Sino-American tension adds fuel to the bullion’s north-run.
- US dollar refreshes the multi-day low while slipping under 95.00.
- Virus news, US-China story and aid plan headlines will be in the spotlight.
Gold prices keep rallying to refresh the multi-year high, currently around $1,874.30 following the uptick to $1,875.22, amid the early Thursday morning in Asia. The bulls are unstoppable near the highest since September 2011 as escalation in the geopolitical tension between the US and China joins the lack of clarity surrounding the US aid package. Also fueling the bullion could be the coronavirus (COVID-19) woes that has been favoring the market’s rush to risk-safety off-late.
More to come…
Looking forward, a light calendar, coupled with an off in Japan, will direct the gold traders towards qualitative risk catalysts for immediate direction. As a result, any more worsening in the pandemic and the Sino-American relations, not to forget the increase of uncertainty surrounding the US fiscal plan, will add strength to the yellow metal’s surge.
Technical analysis
While the early month-top near $1,818 offers immediate support to the yellow metal, any downside past-November 2011 peak surrounding $1,800 could exert additional downside pressure. Until then, bulls are ready to challenge the all-time high of $1,921.07 flashed on September 2011.