- Gold continued to climb higher for the third session in a row and soared to month-long highs.
- The sustained sale of USD benefited the dollar-denominated commodity and remained supportive.
- Market optimism could contain any further gains for the safe-haven yellow metal.
He oro it maintained its strong offered tone during the middle of the European session and soared to a fresh one-month high, around the $ 1,884 region in the last hour.
The precious metal gained strong follow-up traction for the third consecutive session and has now recovered more than 3.5% from two-week lows, around the $ 1,818 region set on Monday. The strong momentum was exclusively sponsored by the prevailing bearish sentiment around the US dollar, which tends to prop up demand for the dollar-denominated commodity.
In fact, the USD index fell to fresh multi-year lows on Thursday amid rising prospects for another round of US fiscal stimulus measures Republicans and Democrats in the US Congress, though still They haven’t reached a deal, were more positive Wednesday, and were reportedly getting closer to approving a $ 908 billion COVID-19 aid package.
The dollar was further pressured by the fact that the Fed showed its willingness to do more if necessary and said it will continue to support the economy through massive monetary stimulus. The Fed also promised to keep interest rates close to zero for years to come, which, in turn, provided additional boost to the non-performing yellow metal and remained supportive.
Meanwhile, global risk sentiment remained well supported by recent optimism about the launch of vaccines for the highly contagious disease coronavirus and hopes for a last-minute Brexit deal. The flow of risk appetite tends to weigh on traditional safe-haven assets, which seemed to be the only factor keeping any further gains for XAU / USD limited.
From a technical perspective, the positive intraday move past the resistance of the previous monthly swing highs near the $ 1,875 zone could have already laid the foundation for further gains. Therefore, any significant pullback could be seen as a buying opportunity and is more likely to remain limited, at least for now.
Technical levels
.

Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.