Gold: On the front foot above $1,550 amid doubts over US COVID-19 Bill

• Gold trades near the highest levels in seven days.
• Increasing calls of further delays in the US coronavirus relief package recently helped the yellow metal.
• Preliminary PMIs can offer intermediate moves, virus headlines, stimulus updates will be the key driver.

Gold prices register close to 1.0% gains while taking the bids to $1567.70 as the Japanese markets open for trading on Tuesday. The yellow metal recently surged after the US policymakers fail to announce a much-awaited relief package while calls of further delays are also crossing wires off-late.

The US Senators continue to mark their displeasure with the Trump administration’s huge aid package, estimated around $2 trillion, to combat the coronavirus (COVID-19).

In addition to this, the market’s risk-tone also waned due to the sustained rise in virus cases in the US and across the world that has resulted in multiple lockdowns in major nations.

US President Donald Trump tried to placate traders with signals to a possible drug recovery but failed to hide fears of further delays in the relief package. The odds of such delay gained further momentum after CNBC reported that the Senate is not likely to vote on the Bill today.

Even so, the US 10-year treasury yields and stock futures defy the previously downbeat trade sentiment as portrayed by Wall Street’s negative closing for Monday.

Other than the virus and aid packages, preliminary readings of the PMIs from the key global economies will add volatility to today’s trading sessions.

Technical Analysis

The yellow metal once again trades beyond 200-day SMA, currently around $1,505, which in turn increases the odds of its further run-up towards 50-day SMA near $1,584.