Gold Price Analysis — February 10

Gold Price Analysis — February 10

Gold (XAU/USD) climbed higher in the early European session on Wednesday, as a weaker US dollar (DXY) and the expectation of additional US fiscal stimulus boosted demand for the yellow metal.

President Joe Biden’s proposed $1.9 trillion stimulus package continued to make significant progress, as Biden agreed on Tuesday to work with a proposal from Democrat lawmakers that would restrict higher-income individuals from accessing the planned $1,400. The House of Representatives will hold a vote on the bill on February 22, with Speaker Nancy Pelosi promising to secure congressional passage by mid-March.

However, the Biden administration appears to be unconcerned with worries about the inflationary effects of massive stimulus spending and ultra-easy monetary policy. Meanwhile, Friday’s worse-than-expected US job numbers—including the non-farm payrolls—further highlighted the need for the package to be passed by Congress soon.

Moving on, market participants will be looking at the US economic docket today—which features the release of the US Consumer Price Index (CPI)—for clues. Investors will also be paying attention to comments from Federal Reserve Chairman Jerome Powell, who is scheduled to speak at a virtual Economic Club of New York event later today.

In other news, China reported earlier today that its CPI grew by 1% (MoM) but dropped by 0.3 year-on-year and that its Producer Price Index (PPI) grew by 0.3% (YoY) in January.

XAUUSD – Hourly Chart

Gold (XAU) Value Forecast — February 10

XAU/USD Major Bias: Bullish

Supply Levels: $1850, $1860, and $1875

Demand Levels: $1838, $1827, and $1818

Gold has picked up a strong bullish momentum since last week’s foray to the $1787 support. The commodity is trading closely along an ascending trendline. However, the XAU/USD appears to be struggling with clearing the $1850 resistance.

That said, we expect more buyers to come on board in the coming hours, which could propel the safe-haven asset to $1875. Meanwhile, a sustained fall below the current trendline seems very unlikely at the moment.

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.