Another retracement analysis on the fall from $1,959.01 to $1,809.90 reveals a support at $1,832, the 14.6% level, a break below may cause a fall to $1,820.
Biden unveiled a $1.9 trillion stimulus package proposal on Thursday designed to jump-start the economy and speed up the US response to the coronavirus pandemic.
Investors will also be focused on further clues on the US monetary policy outlook when Federal Reserve Chairman Jerome Powell participates in a virtual event, due at 1730 GMT.
Consumer prices are expected to run hotter in a couple of months when March and April of 2020, which saw very low inflation, fall off the yearly reading.
A break above $1,869 could lead to a gain to $1,883. On the daily chart, the fall from the Jan. 6 high of $1,959.01 looks deep enough to suggest a resumption on the downtrend from $2,072.50.
A break below $1,930, now a support, may cause a fall to $1,915. On the daily chart, gold has broken a falling trendline and a resistance at $1,938. It is expected to rise to $1,965, the peak of a wave B.
That means monetary policy needs to be loose and that kind of environment can still entice people to hold gold as an insurance asset in the portfolio," Schnider said.