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Gold pulls back from multi-day highs, still well offered above $ 1,900

Gold spiked to multi-day highs, around the $ 1918 region during the early days of the American session, although it quickly lost around $ 10 thereafter.

The precious metal managed to regain some positive traction on the first day of a new trading week and built on last week’s rally from the $ 1,882 region. The rally marked the third day of a positive move in the previous four and was solely sponsored by the emergence of some new sales around the US dollar, which tends to benefit the dollar-denominated commodity.

However, the bullish market mood, as shown by a positive opening in the US equity markets, undermined demand for traditional safe-haven assets and kept strong gains for the XAU / USD in check. Global risk sentiment was supported by the revival of hopes for additional US fiscal stimulus and expectations for a COVID-19 vaccine by the end of this year.

Risk appetite was bolstered by a strong intraday rally in US Treasury yields, which did further to limit gains from the no-yielding yellow metal. However, the XAU / USD has still managed to hold on to modest daily gains and was last seen trading just below the $ 1,910 region.

In the absence of major economic releases to move the US market, broader market risk sentiment will influence safe haven demand for the XAU / USD. This, along with USD price dynamics, could further help traders seize some significant opportunities.

Credits: Forex Street

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