Gold has found itself in an awkward position after tumbling since the beginning of the year. In the span of a month, the yellow metal has fallen from the highs of 1959.406 all the way down to lows of 1785.020 on Thursday, extending by 127.2% from its previous swing high to swing low.
News and better than expected economic data released in regards to the US Treasury and Employment levels, strengthened the US Dollar. This contributed to the return to consolidation levels and subsequent break out to the downside for the pair. With the Democrats set to pass President Joe Biden’s $1.9 Trillion stimulus package, we may see a continuous downside for the metal.
On Friday, Gold returned above $1800 levels, however, this may prove to be an expected correction before dipping lower. Should the metal see a break out above $1824, the metal can see a quick rally as bulls take over in the market. However, should it continue to falter, lower levels will be seen.