The yellow metal is attempting a moderate move after falling 1% yesterday during a quick recovery staged by the US dollar. Risk-aversion caught the markets on a Bloomberg report that the Biden administration is proposing higher taxes on the wealthy to pay for its social plan. Escape to safety boosted the safe-haven greenback at the expense of stocks and gold.
The focus now remains on the dynamics in the treasury yields and the dollar for fresh trading momentum. In the meantime, let us look at how gold is positioned on a technical perspective. A break above which would clear the path towards $1796, the pivot point one-day R1.
Further up, the Gold buyers need to find approval above $1800 level to take on the further upside. That level is the confluence zone of the previous day high; pivot point one-week R and pivot point one-month R2.
We expect Gold to continue its bull run.
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