Gold trading plunged $ 20 or 200 pips from $ 1,850 to $ 1,830 following the latest shocking report in the Asian session this morning.
This is related to the expected stimulus package to be announced by future US President Joe Biden with a larger value of $ 2 trillion. That value is $ 700 billion more than the previous $ 1.3 trillion package value.
The report boosted US treasury revenue and pushed for further strengthening of the US dollar in the market.
Due to that, the price on the XAU / USD chart is seen plummeting in today's Asian session after the horizontal movement of the price is displayed for several days.
The bearish move below the Moving Average 50 (MA5) barrier level within the 1 hour time frame indicates a bearish trend for gold trading.
Prices are likely to drop lower testing the weekly support zone reached on Monday around 1820.00.
A lower decline will lead to the previous price level at the 1800.00 zone.
However, the price rise above the level of 1850.00 will give an early signal for a resurgence in the price of gold.
The re-price will push the 1900.00 price zone as the main focus area for investors.
Investors will be more cautious looking forward to clearer price movements following the announcement of the economic package by Joe Biden today.
