Coronavirus stimulates gold price. Biden's 1.9 trillion plan faces opposition, market hedges (with trading strategy)
The price of gold maintained its recovery trend last week. The market questioned US President Biden's second step of new crown stimulus measures. The virus variants continue to challenge the recovery of the global epidemic. The current trend of the epidemic is driving gold buying.

Gold picks up bids around $1,858, an intraday high of $1,859.03, during the initial Asian session on Monday. The yellow metal marked the heaviest drop in six days on Friday before bouncing off $1,837.40. While hardships for the US coronavirus (COVID-19) aid package joins the covid strain worries to heavy the metal, recent chatters over the stimulus seemed to have favored the buyers.
The world's largest gold exchange-traded fund (ETF) SPDR Gold Trust GLD reduced its gold holdings by 0.07% to 1,173.25 tons on Friday.
Spot silver rises 0.9% to US$25.61 per ounce, platinum rose 0.6% to US$1,105.06 per ounce, and palladium rises 0.1% to US$2,355.83 per ounce.
After the United Kingdom and South Africa confirmed the emergence of a variant of the new coronavirus, there are currently confirmed cases of the variant strain in many countries around the world. The escalating infection poses challenges to global policymakers, and these strains are resistant to vaccines and spread faster fast. The recent report of new cases in Northland, New Zealand, made the country the latest victim. In order to control the infection, the United States plans to restart the ban on visitors from the United Kingdom, Ireland and Brazil, and France is also preparing to announce a third blockade.
U.S. President Biden's top economic adviser will meet with congressmen from both parties this week to promote the Biden administration's $1.9 trillion rescue plan. According to news, Biden's rescue plan has encountered resistance.
Trading strategy (Source: Trading Central)
Our pivot point stands at 273.8.
Our preference: as long as 273.8 is support look for 317.6.
Alternative scenario: the downside breakout of 273.8 would call for 258.9 and 249.8.
Comment: the RSI is above its neutrality area at 50. The MACD is below its signal line and positive. The stock could retrace in the short term. Moreover, the stock is trading above both its 20 and 50 day moving average (respectively at 281.3935 and 252.6973).
Supports and resistances:
335.9 **
326.9 *
317.6 **
308.6
289.39 (USD-last)
279.5
273.8 **
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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