Gold eases from record highs on Tuesday

The price of gold continued to shoot higher during the Asian session and was seen reaching new record highs near 1,950 USD, before giving up those gains and dropping to 1,910 USD. Silver followed the sell-off and was trading more than 6% lower during EU trading hours.

Daily candles of both instruments now seem like large bearish pin bars, which might indicate the current bullish trend is over, and a correction is due. 

From other news, US Republicans unveiled their latest 1 trillion USD stimulus package on Monday. They now need to find a compromise between this plan and the Democrats’ 3.5 trillion USD proposal before some of the earlier support measures expire at the end of the week.

Equities were trading flat on Tuesday morning, with indices erasing earlier gains, but volatility so far is only minimal. 

The greenback halted its decline and was broadly higher today. The EURUSD pair dropped toward 1.17, while commodity-linked currencies suffered the most. 

Later in the day, the US consumer confidence gauge is expected to decline slightly to 94.0 from 98.1 previously, which might be a bit negative for stocks and positive for the US dollar.