Dollar Casts "The Return of the King," Gold Lingers Below $1,900 (With Trading strategy)
The U.S. dollar has driven prices in the precious metals market lower.

Gold prices lingered below the key $1,900/ounce psychological level on Wednesday as lack of an agreement on additional U.S. fiscal stimulus helped the dollar stay firm.
By 11:30(GMT+8) on Wednesday, the spot gold was up 0.23% to $1895.23.
Expectations for a Covid-19 vaccine took a backseat after Johnson & Johnson and Eli Lilly and Co paused vaccine trials.
Hopes for a new coronavirus relief package were dented as U.S. House Speaker Nancy Pelosi rejected a $1.8 trillion proposal from the White House, saying it "falls significantly short of what this pandemic and deep recession demand."
"Early vaccine hopes are getting dashed" each day and "no one really knows" when additional U.S. stimulus will be announced, Chintan Karnani, chief market analyst at Insignia Consultants, said. "Nervousness over stimulus has caused gold and silver prices to fall."
Global finance leaders on Tuesday said the world economy had escaped a coronavirus-triggered collapse so far, but warned that failure to conquer the pandemic, maintain stimulus and tackle mounting debt among poor nations could crush a fragile recovery.
The IMF said forecasts for the global economy were "somewhat less dire" as wealthy countries and China rebounded more quickly than expected.
"The stagnation in Washington over the next stimulus package continues to pressure assets like gold that were relying on the weakness in the dollar for the next wave of support," said David Meger, director of metals trading at High Ridge Futures.
"The IMF and other agencies like the U.S. Federal Reserve have also noted that recovery has taken place a little quicker than they originally anticipated, so that would lead us to believe that there could be a need of lesser stimulus worldwide."
"Gold has been toyed with" during negotiations for the fiscal stimulus deal, with the latest deadlock "taking away some of the short term bullish drivers we anticipated," said Edward Moya, a senior market analyst at OANDA.
"But all that means is that we're going to get the stimulus later, probably early next year, and that will lead to higher gold prices."
Gold, considered a hedge against inflation and currency debasement, has risen 25% this year amid unprecedented global levels of stimulus during the pandemic.
If the stimulus are reduced in the future, it will reduce gold's attractiveness, which will increase the downside risk for the gold.
Trading Strategy (source: Trading Central)
Pivot: 1980.00
Our preference: short positions below 1980.00 with targets at 1770.00 & 1670.00 in extension.
Alternative scenario: above 1980.00 look for further upside with 2075.00 & 2180.00 as targets.
Comment: as long as 1980.00 is resistance, expect a return to 1770.00.
Supports and resistances:
2180.00 **
2075.00 ***
1980.00 ***
1895.44 Last
1770.00 ***
1670.00 ***
1560.00 **
Guideline for Trading Central strategy
Trend chart reading guideline
1. First look at the time period in the upper left corner of the chart: ·30MIN and 1H chart shows the trading suggestions for intraday ·Daily chart shows the market trend analysis in next 2-3 days
2. The blue horizontal line on the chart marks the pivot: pivot indicates the reversal of the market. When the price is above the pivot, it indicates an upward trend, when the price is below the pivot , it indicates a downward trend. When the price breaks through the pivot, the trend is reversed.
3. The red and blue thin curves in the Candlestick chart chart are technical indicators: Red line is MA20+Bollinger bands, Blue line is MA50. under the Candlestick chart chart are also the technical indicators: Blue line is RSI, Red line is 9MA;
4. The green horizontal line is the resistance level for a price increase, and is also the profit target for long orders; the red horizontal line is the support level for a price decrease, and is also the profit target for short orders.
How to use TC strategy?
1.[Pivot] is the reversal line of the market trend. When the price up the pivot line which means in Bullish, you can open a long position or Buy. on the contrary, when the price under pivot line which means in bearish. You ‘d better make short positions or Sell.
2. [our preference] is the main trading suggestion for your reference. You can exit your trading refer to this target or close positions before it.
3. [Alternative scenario] is the plan B for your reference.
4. [Comment] is the technical analysis of market trends and technical support for trading strategies.
5. [Supports and resistance] Supports are levels where the price tend to find support as it falls.
Resistances are levels where the price tend to find resistance as it rises. So, exit before the trend reverse.
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