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22:17 IST

Gold prices rose on Wednesday, Gold prices got a fiscal booster shot after EU leaders agreed AZupon a history rescue fund deal.  Gold’s rally accompanied with surging stocks, so if big tech earnings disappoint after the close, demand for safe-havens could remain strong.  

Gold inched up 0.85 to $1859.65 at the time of writing.

Gold is at nine-year highs, rising to levels it has not hit since September 2011, with the precious metals lifted by an agreement on a fiscal rescue plan by European leaders and expectations for additional spending by the U.S. government. 

European Union leaders ended a grueling four-day summit with an agreement on a €1.8 trillion ($2.1 trillion) budget and rescue-fund package aimed at shoring up the worst-hit economies in the wake of the COVID-19 pandemic. 

The EU deal also lent support to equities, with U.S. benchmark stock indexes headed higher on Wall Street. However, gold, a traditional haven asset, was also boosted on expectations fiscal stimulus efforts could stoke inflation and lead to a weaker U.S. dollar. 

The U.S. dollar is hovering around four-month slows, lending support to gold. The U.S. Dollar Index is at 95.09, down 0.03%. A weaker dollar makes gold cheaper in other currencies. 

Investors seem to look for a safe-haven as the number of COVID-19 cases and deaths in the U.S. continues to climb, while the Congress struggles to agree on a new stimulus bill after the current one ends at the end of the month. 

Continued turmoil in U.S.-China relations may also be supportive of gold. Relations took a turn for the worse this week after the U.S. Justice Department accused China on Tuesday of sponsoring hackers who are targeting labs developing COVID-19 vaccines on Tuesday.

On the technical front, the RSI is at 67.35% and suggests that the market can move in an upward direction. The current price is trading above all the Moving Averages. The current price is above the lower band of the Bollinger Bands. The stochastic is forming a downside crossover on an 8-hour chart.

Overall Bias is Positive and Short-term trades can be initiated with below mentioned Stop Loss and Profit targets.

Trade Suggestion-GOLD-SHORT SELL at 1859.20 Take Profit at 1846.50 Stop Loss at 1861.50.

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