Can Gold Prices Hold Above $1,700?

Gold prices rallied over $40 to post their biggest jump in two months on Tuesday – fuelled by growing optimism over a U.S stimulus deal.

Trader’s attention has now shifted toward progress around the $1.9 trillion U.S economic stimulus deal, which is expected to be sign-off by President Biden in the coming days.

Elsewhere, U.S. inflation data will also be a major headline event this week, with Core CPI likely to move higher from 1.4% to 1.6%. Traders will also be monitoring the European Central Banks monetary policy announcement, alongside U.S. jobless claims and PPI data.

Unprecedented global stimulus measures, soaring government debt and ultra-loose monetary policies from central banks across the world, should likely remain extremely supportive for Gold prices in the medium to long-term.

However, in the near-term, the big question now is whether Gold prices can hold above the key psychological level of $1700 an ounce.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions: