Where Did You Gold? Gold Price Broke through $1,890, Next Mover: U.S. Stimulus Deal

Source: tradingview

The gold price just broke through the $1,890 mark in the early Asian market on Monday. The congress strikes long sought stimulus deal to provide $900 billion in Aid, which stimulate gold bulls.

It is reported that the Democrat and Republicans had an agreement on another round of pandemic aid, including direct payments to Americans, jobless benefits and funds for businesses and vaccine distribution.

The progress of the fiscal stimulus plan helps boost the demand for gold. The gold, which considered as a hedge against inflation and currency devaluation risks, has risen by more than 20% so far this year, driven by unprecedented global economic stimulus measures.

Analyst forecast that as long as the gold price remains above the $1,875 level, gold price will remain its upward trend. Analyst also pointed out that in the case of the continued upward trend for the gold price, the first target level for the gold price is at $1,917. If this level is breached, the gold price is expected to move upward to $1,928.60.

By looking at the FOLLOWME Overall Sentiment (As of 10:40 a.m.), the overall sentiment of FOLLOWME traders in the XAU/USD leans slightly towards shot-selling with a ratio of 52.28% while the rest of 47.72% is long position.