Gold Price Analysis: XAU/USD refreshes intraday high around $1,730 on Biden’s optimism

• Gold takes the bids after stepping back from 10-day top the previous day.
• Biden lauds his administration’s work on taming covid, stays cautious on job outlook.
• Risks remain elevated amid vaccine optimism, hopes of further stimulus and economic recovery.
• Light calendar in Asia probes bulls, US data eyed.

Gold refreshes intraday top to pierce $1,726, currently up 0.10% around $1,725, during early Friday. The yellow metal recently rose as US President Joe Biden gives his first prime-time appearance to commemorate the coronavirus (COVID-19)-led lockdown’s anniversary and how the US managed to overcome.

During the initial words of the speech, US President Biden praised his administration during the initial two months of fighting the pandemic and promised vaccines for all American adults by May 01. The Democratic leader also praised the $1.9 trillion American Rescue Plan but hints at worries over the US jobs.

Read: US President Biden: Stimulus to fuel faster US recovery; jobs outlook still dull

Even so, the markets aren’t too active. The recent lack of reaction to the key speech could be traced to the latest passage of the US $1.9 trillion stimulus and a lack of any hints for the recently chatters $2.5 infrastructure plan. Also, the pre-event update from the White House already conveying most highlights dimmed the importance of the event.

Even so, market sentiment remains positive as the US on the road to recovery from the pandemic times. Also favoring the mood could be the Novavax update suggesting strong results while trying to tame the UK covid variants.

Alternatively, AstraZeneca’s fears to fall short of vaccine deliveries to the European Union (EU) and the US actions to disappoint Huawei suppliers join Australia’s dislike for Hong Kong conditions to challenge the risk-on mood.

Against this backdrop, US 10-year Treasury yields and S&P 500 Futures print mild gains whereas stocks in Asia-Pacific track Wall Street’s uptrend by the press time.

Having witnessed the initial market reaction to US President Biden’s prime-time speech, gold traders should keep eyes on the vaccine and unlock news ahead of the US Michigan Consumer Sentiment figures for March, expected 78.5 versus 76.8 prior.

Read: US Michigan Consumer Sentiment March Preview: The post-COVID blues

Technical analysis

A clear break of 10-day SMA, currently around $1,713, not to forget sustained trading beyond the $1,700 threshold, keeps gold buyers directed towards the key $1,765 resistance confluence comprising a two-month-old falling trend line and November 2020 low.