Gold sets new daily highs but remains capped at $ 1910

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  • XAU / USD rises for the third day in a row, supported by dollar weakness.
  • Investors waiting for Brexit news and US data

The gold quickly reversed an early fall in the European session to the region of $ 1903 and up to $ 1912, marking a new high for the day. It is trading $ 1909, in positive territory for the day, with a bullish bias, in a context of limited travel.

The weakness around the US dollar helped the commodity return to positive territory for the third consecutive session on Friday. Lower expectations of additional US fiscal stimulus measures, coupled with political uncertainty, kept the dollar on the defensive on the last day of the week.

The dollar was further pressured by a modest decline in US Treasury yields , which tend to benefit the yellow metal. However, concerns that a sharp increase in COVID-19 cases could lead to further lockdown measures and hamper the global economic recovery, which would be favorable for the dollar.

Therefore, it will be wise to wait for some solid follow-up buying before traders start positioning for any further appreciation moves in the short term. Market participants are now awaiting the release of US retail sales figures, in addition to industrial production and the preliminary estimate of the Michigan consumer sentiment index for October. In addition, the focus of attention is on Brexit .

Credits: Forex Street

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