Since Monday, the price of gold has started to fall slightly after rising more than one per cent during the opening of the Asian trading market on February 1, hovering around $1,850 to $1,870 per ounce.
This trend is likely to continue in the coming weeks as better US economic conditions make the value of the dollar more desirable, said Golden FX Link Capital business manager Chea Prasith.
According to the Wellxin news portal, 10 Republican senators have urged newly elected President Joe Biden to lower the stimulus budget package for the Covid-19 crisis to $600 billion, around one third of the proposed total budget plan.
This has been touted as a bilateral move to accelerate its approval and help resolve the current crisis and recover the US economy as soon as possible.
The New York Times reported on Monday that under the patronage of Biden’s administration, vaccine production had increased to 1.3 million doses a day in just one week.
With the rollout proving effective there is the high probability of the administration of Biden meeting the new president’s promise of producing 1.5 million doses per day.
Meanwhile, the US Federal Reserve’s economic recovery intervention remains effective, and this is expected to continue until the country’s economic situation improves.
Mary C Daly, the president and CEO of the Federal Reserve Bank of San Francisco, said the Federal Reserve must not prematurely stop or reduce its support for recovering the US economy due to short-term increases in the profits of investors on the stock market.
She added that the provisional success of investors cannot be taken as signs of economic recovery. Therefore, the economic recovery intervention needs to take place.
These positive points during the US economic recovery are good fundamentals for traders to sell gold when the price falls to $1,825, setting the first take-profit function at $1,805 per ounce and the second at $1,790 per ounce and stop-loss function at $1,835 per ounce.