Gold 20 January 2021
Gold is trading higher on a weak US dollar. The yellow metals short term trend is neutral as long as resistance $1868 holds. The chance of more stimulus has increased after Janet Yellen said the US must act big. The US 10-year yield has lost more than 3% after Janet Yellen confirmed that tax cuts implemented in 2017 will be revoked. US dollar indexs significant bullishness only if it breaks 91 levels.
The yellow metal facing strong support at $1838, violation below targets $1830/$1823/$1818 (61.8% fib)/$1800.
Significant trend reversal only below $1800.On the higher side, near term resistance is around $1856, any indicative break above that level will take till $1867/$1874/$1880.
It is good to buy on dips around 1820-1840 with SL around $1800 for the TP of $1880.