GOLD
The presidency of Joe Biden started with expectations for a new stimulus and with a new rally for the bullion price. Gold jumped well above the threshold of $1,850 and is now dancing around the $1,870 mark. This rebound confirms the momentum for gold’s recovery has returned, as investors are betting on further monetary stimulus from central banks in the next few months. From a technical point of view, we can see a first bullish target at $1,900, while only a decline below $1,830 would denote weakness, as the main trend still appears supportive for the yellow metal.
OIL
Oil has fallen, once again, breaking through the $53.90-54 zone before slowing down below $53. From a technical perspective, the price is playing with the first support zone at $52.70. A breakdown of these levels would open space for further declines and increase the chance of a fresh test of $51.80-$51.90. However, given the main trend is still bullish for oil that still seems unlikely.
