Gold has had a great start to the year after enduring a difficult final few months of 2020.
The yellow metal smashed through $1,900 and hasn't looked back, seeing some resistance around $1,950 but not pulling back in any significant way.
The backdrop of a softer dollar is continuing to be supportive for gold, although that could be tested in the coming days depending on the outcome of the Senate re-run election in Georgia. Should the Democrats take effective control of the Senate, it could be bullish for the greenback and stall gold's progress.
From a technical perspective, gold is testing an interesting level around the 61.8% fib of the summer highs to November lows. This coincides roughly with the top of the rising channel on the four hour chart which could make it an interesting level of resistance in the near term.
A break above here could open the doors to a run at $2,000 which would be very interesting, indeed.
It will be bullish for Dxy if Democrats win Senate? I read everywhere and also assumed that if Democrats take control of the Senate then it would be easier for them to pass more stimulus which will be negative for Dxy.
jojofang0901
⋅
I alsp have a bias for long on Gold, but waited to wait for continuation correction to confirm :) thank you