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Gold Price Analysis: XAU / USD dips towards $ 1,900, gains more than $ 10

The troy ounce of the precious metal fell to its lowest level in nearly a week at $ 1,882 on Wednesday, but made a decisive rally in the second half of the day. After climbing to a daily high of $ 1,913, the pair XAU / USD It has entered a consolidation phase and was last seen gaining 0.65% on the day at $ 1,903.70.

USD recovers modestly from safe haven flows

Earlier in the day, the widespread selling pressure surrounding the dollar helped the XAU / USD climb. However, the latest headlines about the coronavirus relief bill negotiations in the US sent the major Wall Street indices lower and helped the dollar limit its losses.

US Treasury Secretary Mnuchin said Wednesday that it would not be easy to reach an agreement with Democrats before the presidential election even though they have made progress on certain issues.

Reflecting the cautious attitude of the market, the main US stock indices fell between 0.6% and 1.1%. Meanwhile, the US dollar index, which touched a daily low of 92.25, is losing 0.2% to 93.35.

No major macroeconomic data will be released for the rest of the day and the USD market valuation is likely to continue to affect the pair’s movements.

Credits: Forex Street

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