Gold is edging higher, continuing the rebound started after the quick crash that brought the price close to the support zone of $1,800. Investors are awaiting further news about the new US government’s planned stimulus as this could be another supportive element for bullion, in conjunction with the weakening of the dollar seen in the last 24 hours.
The oil price is close to the former support zone – now resistance – placed at $52.70. If the price can surpass this level, there would be space for further recoveries, with a potential target last week’s high at $53.9-$54, an area which remains the main resistance zone. Overall, the environment for oil still appears supportive, as investors are betting on an economic recovery once the vaccinations defeat the virus. On the downside, the first support levels are placed at $51.80 and $51.50.