Gold this week opened the Asian session with deepened losses, recording a fresh intraday low of $1,818.70/ounce. The decline is mainly attributed to the dollar's rally.To get more news about WikiFX, you can visit wikifx official website.
President-elect Joe Biden recently revealed a $1.9 trillion package titled American Rescue Plan, which included provisions delivering aid to American families, businesses and communities, and focused on vaccine production and delivery.
The DXY, instead of shrinking, jumped to 90.76 on Biden's plan, deepening the losses in gold prices. The market has long geared up for the stimulus plan that comes belatedly after months of negotiations. Such numbness to predictable risks is the source of the enduring pressures on gold.
Retail sales declined by 0.7% in December, said the US Commerce Department. Demands for haven currencies have been increasing amid the economic impacts of the current pandemic. Thus the DXY is expected to gain 0.7% this week, compared to the earlier 0.50% growth.
“The market is sorting through the fallout of stimulus, inflation worries, and a US dollar rebound. It will take some time before gold starts to climb again,” said Market strategist Adam Button.
“We could go down below $1,800 if the US dollar index keeps going up,” said Market strategist Phillip Streible.
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