Gold on Tuesday hit a high record of 1980 as the US dollar fell to a two-year low on investors’ outlook, policies and inflation readiness. Expectations of a stimulus have sent Asian stocks in turmoil.

Investors are expecting fiscal and cash spending boosted by Fed Chairman Jerome Powell to provide more stimulus after Wednesday’s policy meeting.

One movement could be to target the average inflation target, which sees the central bank aim to push inflation above the 2% target. The rise was again by technology stocks as investors spent money on this week’s valid earnings report. Analysts also noted that the weakening of the dollar was a positive thing.

It is hoped that some of the delays could be prevented as Republican lawmakers in the United States fill the details of the $ 1 trillion coronary aid bill before the unemployment benefit expires at Friday.

The proposal could involve reducing benefits from $ 600 to $ 200, which could have a significant impact on household income and spending power.

The aid is a necessity as 30 million Americans face unemployment, and states are narrowing their social-distancing, a trend that has dragged the dollar down.

Indeed, the dollar has fallen sharply in recent days, hitting a two-year dollar index of $ 93,416 (DXY). It could be a full resistance and a support of gold, with the main resistance going at 1993.96 and the support 1988 and then falling to the resistance 1993.19 and the support 1992.24. Gold hit $1975 an ounce on Tuesday, rising $16 in just six sessions.

Oil prices also tended to benefit from a weaker dollar, but were hampered by demand concerns as more countries restricted travel more. Brent crude (LCOc1) futures rose 20 cents to $ 43.61 a barrel, while US crude (CLc1) fell 12 cents to $ 41.72.

Pivot point: 1950

Resistance1:1964    Support 1:1928

Resistance2:1980    Support 2:1900

Today’s XAUUSD Signals:

Traders should buy gold: 1930, Set Take Profit: 1945, Stop loss: 1925.

Analyzed by:Ms. Van Sreytouch (Michelle),Independent Analyst