Forex. Gold is trading below the resistance
Gold is trading just below the resistance of $1730 an ounce.
The metal market steadied as investors weighed signs of an economic recovery on the back of better-than-expected US employment data and the fallout from President Joe Biden's plans. Market participants are still watching the debate over Biden's $2 trillion - plus proposal unfold, as Republicans express cautious support for a more limited plan.
Meanwhile, Gold posted its first quarterly drop since 2018 on the back of rising bond yields and optimism about the global economic recovery after the pandemic. Investor sentiment towards the metal has declined, traded funds falling to their lowest level since May, and hedge fund managers cutting net Gold purchases to a three-week low.
India imported a record 321 tons of Gold in March, compared with 124 tons of Gold a year ago. Increased supply of the world's second-largest consumer of the precious metal could support prices, which have adjusted nearly 17% since the historic high of $ 2,072 an ounce in August 2020. The country's Gold imports rose 471% in March from 2020, as lower import taxes and price adjustments from record levels attracted retail buyers and jewelers. India's precious metal shipments could fall below 100 tonnes in April as jewelers fear the government could impose a quarantine to stop the rise in new diseases.
In the forecast, I expect the price of Gold to rise to the level 1750 dollars per troy ounce.