XAU / USD rises to two-week high, targets $ 1,900 level amid risk appetite

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  • Gold bulls flirt with a fifteen-day high at $ 1,871.
  • Joe Biden becomes the 46th president of the United States, reiterates electoral promises and mentions coronavirus concerns.
  • WHO Plans Series of Covid Vaccine Approvals, China Releases US Sanctions
  • The Australian jobs data and the BoJ will focus investors’ attention on the Asian session. Biden’s first day in office and the ECB will be the key on Thursday.

Gold Buyers Pause Around $ 1,871 Level, recent high, at the start of the Asian session on Thursday. In doing so, the yellow metal hovers around the two-week high as investors await further momentum to extend optimism.

While Joe Biden’s entry into the White House could be seen as one of the main reasons for the latest positive sentiment On the market, the World Health Organization (WHO) is expected to roll out more coronavirus vaccines, further boosting sentiment.

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Markets welcome Biden, but Trump doesn’t …

Although Biden’s swearing-in ceremony failed to deliver any immediate market move, a gradual improvement could be witnessed as the president reiterated the party’s agenda that claimed to act on electoral promises. Former President Donald Trump abstained from attending the inauguration and left a note in the oval office for Biden.

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On the other hand, the administration of Biden fears a rise in coronavirus infections and vowed to control the pandemic. The WHO also says it has prepared for faster vaccine launches, according to Reuters. It’s worth mentioning that Oxford scientists are preparing new versions of vaccines to combat emerging strains, according to the UK Telegraph.

On the downside of risk, China released a list of 28 American individuals, most of them members of Trump’s team, to be sanctioned. Furthermore, virus cases have receded in the Northern Hemisphere, but the death toll is high and tests investors’ appetite for risk.

In this context, the S&P 500 set a new all-time high, while the rest of the Wall Street benchmarks also closed positive on Wednesday. By contrast, 10-year US Treasury bond yields fell 1.4 basis points to 1.078% at time of writing.

Later in the day, the figures Australian employment for December and the Bank of Japan monetary policy meeting (BoJ) can entertain investors during the Asian session on Thursday. Both events are likely to provide additional strength to the upbeat sentiment. However, more attention will be paid to the meeting of monetary policy of the European Central Bank (BCE) and how Joe Biden acts during his first full day at the office.

Technical analysis

The sustained breakout of the 200-day SMA, now around $ 1,847, renews the bullish momentum for gold. However, the 50-day SMA near $ 1,960 and the January 12 high around $ 1,865 will put buyers to the test. Meanwhile, a break to the downside of the 200-day SMA needs a sustained breakout of an ascending trend line from March, now at 1.829.

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