- A modest pickup in USD demand puts some pressure on gold prices.
- A new downward movement in stock markets helps limit deeper losses.
He oro moves slightly lower during the European session on Thursday, staying within the range of the previous day near the $ 1,900 level.
The precious metal came under further selling pressure on Thursday and returned some of the previous day’s recovery move from a week-long lows. A stronger US dollar has been considered one of the key factors putting pressure on precious metal prices, denominated in dollars, although a combination of factors has helped limit the deepest losses.
Investors remain cautious in the wake of the pause in vaccine development for the coronavirus earlier in the week. Added to this, concerns about a rapid increase in new COVID-19 cases and the stalling of next round of fiscal stimulus measures The US dollars have benefited the US dollar as a global reserve currency.
However, a further downward movement in stock markets supports the precious metal’s safe-haven status. Risk aversion sentiment has been bolstered by a weaker tone around US Treasury yields, offering some additional support to the yellow metal. and has helped limit the deepest losses, at least for now.
Market participants are now awaiting the US economic calendar, featuring the release of the Philadelphia Fed Manufacturing Index, the Empire State Manufacturing Index, and initial weekly jobless claims. The data may influence USD price dynamics, which, along with broader market risk sentiment, could generate some trading opportunities at the start of the American session.
Credits: Forex Street