Gold rises to three-day highs, $ 1,900 back in sight

• Gold gained some follow-up traction for the second straight session on Monday.
• A moderate demand from the USD, the political uncertainty of the United States provided a slight boost to the raw material.
• Signs of a strong opening in the US equity markets could contain any additional gains.

The gold it maintained its bidding tone during the early North American session and spiked to three-day highs in the past hour, with the bulls now eyeing a move to regain the $ 1,900 level.

The US dollar struggled to preserve its initial gains, instead witnessing a modest pullback from month-long highs, which, in turn, extended some support to the dollar-denominated commodity. Added to this, growing mistrust about the actual outcome of the US presidential election led traders to withdraw their bets and provided an additional boost to safe-haven gold.

However, a strong rebound in global risk sentiment, as shown by signs of a strong opening in US equity markets, undermined demand for the safe-haven precious metal. This could act as the only negative factor limiting the rise of the XAU / USD. This makes it wise to wait for some solid follow-up purchases before positioning yourself for more profit.

From a technical perspective, the XAU / USD was last seen hovering around the breakout point of the 100-day SMA support, around the $ 1892-93 region. Any subsequent positive movement could still be seen as a selling opportunity and risks fading quickly near the $ 1903-05 congestion zone, further justifying caution for aggressive bull traders.

That said, the drop is likely to remain muffled ahead of Tuesday’s US election. The result is likely to instill volatility in global financial markets and create some significant business opportunities.