- XAU / USD is rising for the third day in a row on Tuesday.
- The major Wall Street indices are posting impressive gains.
- The USD is struggling to find demand as the focus shifts to the US elections.
The pair XAU / USD it gained nearly 1% on Monday and continued to rise Tuesday with the dollar facing strong selling pressure ahead of the US presidential election. At time of writing, the pair was up 0.65% on the day at $ 1,908.
Market risk appetite on Tuesday appears to be weighing more on the USD than on the precious metal. The US dollar index, which hit its best in more than a month above 94 on Monday, was last seen shedding 0.7% at 93.38.
Reflecting market optimism, the major Wall Street indices posted impressive gains on Tuesday. So far, the S&P 500 and Dow Jones Industrial Average indices are up about 2.1% on the day.
Anticipating the potential impact of the US presidential election outcome for XAU / USD, “gold is highly dependent on stimulus and the more the merrier,” said FXStreet analyst Yohay Elam. “The optimal scenario is a clean Democratic sweep, followed by a Trump victory. A split between President Trump and the Senate is the worst outcome.”
Credits: Forex Street
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