Gold was down on Friday morning in Asia, easing as U.S. Treasury yields gained but also aided by a weaker dollar and further U.S. stimulus bets.
Gold Futures edged down 0.17% at $1,862.65 by 11:35 PM ET (4:35 AM GMT). The dollar inched down on Friday.
Benchmark treasury yields remained higher after data released on Thursday showed a slight decline in initial jobless claims. The past week saw 900,000 claims filed, against the 910,000 claims in forecasts prepared by Investing.com and the 926,00 claims reported during the previous week.
Yields on the longer end of the curve rose alongside inflation expectations on Thursday, with investors continuing to expect more debt supply under the Joe Biden administration.
The newly inaugurated president is pushing for additional spending of up to $2 trillion, which gave U.S. shares a boost overnight. There are also hopes that Biden’s 1.9 trillion COVID-19 stimulus package proposed earlier in the month, will receive the necessary Republican support in Congress.
On the central bank front. the European Central Bank (ECB) handed down a policy decision on Thursday that kept interest rates steady. The central bank also pledged to provide more support for the economy if required.
ECB President Christine Lagarde also issued a warning that ever-increasing COVID-19 numbers and restrictive measures, such as lockdowns, to curb the spread of the virus could challenge the region’s economic outlook.
On the technical front, GOLD RSI stood at 50.404 the current price is trading Above the Moving Averages 5 & 50. So, a Buy trade can be executed with the following target and stop-loss:
TRADE SIGNAL- GOLD – Buy: 1860.30, TARGET:1895.30 , STOP LOSS:1845.30.