Gold rebounds on inflation risks.
Gold under the bullish pressure today – gaining nearly 1%- reversing from the a one-month low touched in the last session, as investor focus has now shifted to prospects of inflation driven by more U.S. fiscal stimulus under President-elect Joe Biden. The money markets are factoring in a very sizeable fiscal stimulus spend from the Democrats and the resultant bounce in inflation. Gold has traditionally been seen as a hedge against the inflation that could result from widespread stimulus – which is adding to the bullish pressure on the precious metal. On the technical side – the price earlier reversed up from lower daily Bollinger Band near key support level 1818.00.
Expect buyers on downward corrections.
Next resistance to watch – 1900.00
Trade with an award-winning STP broker! Lowest spreads on the market for Forex, Precious Metals, Energies, & Crypto. No re-quotes, no rejection of orders & instant withdrawals.