The yellow metal has been on a downtrend since the end of Feb 2021 to as low as 1676.89, largely affected by the spike in yields in the past weeks. Until President Biden signed the close to USD$2trillion agreement on stimulus package and hinted his worries on jobs, dampening the dollar. Not to mention the worse-than-expected core CPI figure released on Wednesday, which further lifted the price of gold from its reversal.

H4 chart stochastic is approaching an oversold situation, implying the market would expect demand during this price range. As of writing, we would expect to push down a little more before a big rebound eyeing to hit 38.2% Fibonacci as resistance. However, for continuous uptrend to validate price has to find its support around 1720/1716. If broken downwards, it looks to continue heading down. Investors eye on next FOMC projection, believed to majorly based on the handling of Covid-19 lockdowns and deeper detail on the stimulus package.

Analyzed by：Mr. Ronald Wu，Independent Analyst