Gold recovers from daily lows, still negative around the $ 1,920 region

• A modest pickup in USD demand triggers some selling around gold on Thursday.
• Risk aversion supports the safe-haven XAU / USD and helps limit deeper losses.

The prices of the oro They are moving slightly lower during the European session on Thursday, although they have managed to recoup a portion of their daily losses to a low of $ 1,911-10. At the time of writing, gold trading near the $ 1,920 level, still negative on the day.

The precious metal has seen some selling on Thursday and has returned a part of the positive movement of the previous day at levels just above $ 1,930, at seven-day highs. A modest pickup in demand for the US dollar has been seen as one of the key drivers. They put some pressure on gold prices, denominated in dollars. However, a further downward movement in stock markets has helped limit deeper losses.

The dollar has strengthened amid the Diminished Hopes for a Stimulus Package in the US Before ElectionsEspecially after US President Donald Trump accused Democrats of being unwilling to reach an acceptable compromise on the stimulus. In addition, investors have remained skeptical that any tax measure can pass in Congress amid strong opposition within Trump’s own Republican Party.

Meanwhile, the slow pace of the US stimulus talks. has affected global risk sentiment. This, coupled with political uncertainty in the US ahead of the November 3 presidential election, has fueled some safe-haven monetary flows and has helped limit deeper losses for the XAU / USD. Current President Trump and his Democratic rival, Joe Biden, will meet in the final presidential debate later this Thursday.

Meanwhile, investors are waiting for the release of the initial weekly US jobless claims to get some momentum. This, coupled with USD price dynamics and developments around the US fiscal stimulus, could generate some significant trading opportunities during the American session.