- The strongly offered tone surrounding the USD helped gold gain strong traction on Thursday.
- Technical buying above the $ 1,920 resistance provided additional momentum to the precious metal.
- Investors look forward to the FOMC’s policy decision in search of significant business opportunities.
The gold It continued to gain height during the early North American session and soared to more than three week highs, around the $ 1,930-32 bid zone in the last hour.
The precious metal gained strong traction on Thursday and built on its recent strong rally from the month-long lows, around the $ 1,860 region touched last Thursday. The US dollar plummeted across the board due to the uncertain US political situation, which, in turn, was seen as one of the key factors that benefited the dollar-denominated commodity.
Democrat Joe Biden appeared to be on his way to victory in the exciting US presidential election. However, none of the candidates, so far, has the 270 votes required in the Electoral College to win the White House. Additionally, the current Republican President Donald Trump has threatened to undermine the victory by challenging its legality in court.
Rising uncertainty continued to weigh heavily on the dollar, which, along with a softer tone around US Treasury yields, pushed flows into the underperforming yellow metal. The strong positive intraday move did not appear to be affected by signs of another strong open in US equity markets, which tends to undermine the safe haven precious metal.
Aside from this, the chances that some short-term trading stops will trigger above swing highs overnight, and a subsequent move beyond the $ 1,920 level could have provided additional momentum to the XAU / USD. A few subsequent purchases beyond the resistance of the October monthly swing highs near the $ 1,930-32 region should pave the way for additional short-term gains.
Moving forward, market participants now look forward to the latest monetary policy decision from the FOMC, to be announced later during the US session. This, along with US political developments and further sentiment. broad market risk, will play a key role in influencing the XAU / USD and help traders seize some short-term opportunities.
Credits: Forex Street
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.
