Gold January 19th, 2021
Gold inched away from a 1-1/2-month low touched earlier on Monday as expectations of additional fiscal stimulus in the United States buoyed bullions appeal as an inflation hedge.
Spot gold was up 0.5% at $1,835.96 per ounce by 12:29 p.m. EST (1729 GMT) after falling to $1,809.90, its lowest since Dec. 2. U.S. gold futures rose 0.4% to $1,836.50.
Gold has taken support near $1800 and shown a minor recovery till $1843. The slight weakness in the US dollar index and dip in US 10-year yield is supporting the yellow metal at lower levels. The minor trend reversal can happen if it breaks above $1865 (200-H MA). US dollar indexs significant bullishness only if it breaks 91 levels.
It is facing strong support at $1823, violation below targets $1818 (61.8% fib)/$1800. Major trend reversal only below $1800.On the higher side, near term resistance is around $1845, any indicative break above that level will take till $1865/$1874/$1880.
It is good to buy on dips around $1815-16 with SL around $1800 for the TP of $1880.