Gold price slightly rebounded from the previous session lows. At the time of writing, the metal trades above $1840. During the previous session, the gold price dropped to a fresh monthly low of $1801. This week the main drivers for the precious metal remain the movement of the US dollar, central bank meetings and the resurgence of coronavirus cases. Today the gold investors and traders should closely monitor the U.S. Treasury Secretary Janet Yellen's testimony which is scheduled later in the day. As per the recent updates, she expected to give comments about the future of the U.S. dollar policy.
US stock futures trading higher ahead of US President-elect Joe Biden's inauguration on Wednesday. On the earnings front, Bank of America (BAC) and Goldman Sachs (GS) reporting earnings today before the bell while Netflix (NFLX) is scheduled to report results after the market close.
Crude oil prices trading steady on Tuesday supported by the ongoing vaccination in almost all countries and more stimulus measures could aid economic recovery which will boost oil demand in the near future.
In the currency market, New Zealand and Australian dollar recovered from the previous session losses following better-than-expected economic data from both the regions.
The gold price hovers near the short-term resistance $1842, any break above this level the next upside levels to watch $1850/1856.
On the data front, The New Zealand electronic card sales increased by 3.4% in December from the previous month’s increase of 1.4%. On the other hand, Australia's new home sales jumped 26.2% month-over-month in December 2020, after a 15.2% gain a month earlier.
Worldwide, the number of COVID-19 cases reported is more than 95.5 million. The United States has reported 23.9 million confirmed cases and has had more than 397,000 deaths from COVID-19, the highest totals in the world. India and Brazil have the second and third highest case tallies, recording some 10.5 and 8 million cases, respectively.
EUR/USD: The currency pair rebounded back to above 1.2100 during the European session ahead of German Zew economic sentiment data.
The important levels to watch for today: Support- 1.2080 and 1.2050 Resistance- 1.2150 and 1.2180.
USD/CAD: The pair trading above 1.2700 in the European session today. The Loonie traders are waiting for the Bank of Canada interest rate meeting on Wednesday. The important levels to watch for this week 1.2680 and 1.2800.
The important levels to watch for today: Support- 1.2700 and 1.2660 Resistance- 1.2760 and 1.2800.
Quote of the day: Your greatest and most powerful business survival strategy is going to be the speed at which you handle the speed of change. That speed of change is the trend – Ajaero Tony Martins.
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