The yellow metal was steadily rise until yesterday U.S. open with almost 100k less unemployment claims, which brough gold back to last November’s low at 1765.38 from over 1800 level. Several factors to look out for investors, inflation rate, government bond yields which has been rising and not to forget the vaccines for Covid-19. Given the rallying return on bonds seen this week, also has contributed to the dip in gold. On the other hand, however, the 1.9 trillion stimulus pack promised by Pres. Biden is still in the play to pump more assets into the U.S. economy which in turn will dampen its currency.

Overall, daily and H4 chart illustrating the bear momentum are still in favour for the metal. Price has hit 1765 support for the third time since Nov 2020 and last week. RSI is suggesting it to correct itself with oversold situation before continue heading south. As of writing, price currently lying on 1769/1772 range within the demand zone. Investors could look to buy into the market between those levels to aim for short term profit at 1787. Longer-term investors could look to short at 1800/1796 given the general outlook so far is bearish.

Analyzed by：Mr. Ronald Wu，Independent Analyst