Gold is bidding at the European session today, due to the US Treasury yield dropped. Hopes of passing the US Infrastructure Expenditure Bill seem to confirm market sentiment ahead of its practical vote on Wednesday.

However, Delta Covid variant tragedies and reflection fears are on the table to challenge gold traders moving forward. On the pipeline, there are orders, conversations about Sino-US conflicts and American household numbers. Rising corona virus cases in the United States and other countries have raised fears of an epidemic, sending shock waves through the stock markets as the highly contagious delta variant appeared to be caught.

European Central Bank policymakers have listed a new policy path this week amid growing fears about a third wave of corona virus outbreaks. In times of political and financial uncertainty gold is often used as a safe haven of value. However, the U.S. Limiting the appeal of gold to the dollar as a dollar index.DXY was close to a 3-1 / 2 month high against its rivals. A strong dollar brings gold to other currencies at a higher price.

U.S. Senate Democrat leader Chuck Schumer said on Monday the two parties would hold a practical vote Wednesday on the $ 1.2 trillion infrastructure bill, which will increase pressure on negotiators as they struggle to find ways to pay for the action. Gold is trading higher amid rising virus cases, US-China tensions and inflationary concerns with lower bond yields and safer asylum purchases. However, weighing the price is firm in the US dollar and requires a weaker investor and consumer.

XAU/USD 4 Hour Chart:

Support: 1799.2 (S1), 1785.9 (S2), 1776.9 (S3).

Resistance: 1821.6 (R1), 1830.6 (R2), 1843.9 (R3).

However the pandemic situation pushes pressure on U.S. Dollar and people moves safe heaven assets. We expect a bullish trend for XAU/USD.