- Gold attracted some buying on the dips near the $ 1,867-66 zone and turned positive in the last hour.
- The fall in US bond yields and the approval of the US stimulus package extended some support to the metal.
- The nervousness of COVID-19, stronger figures for US GDP benefited the USD and could limit gains for XAU / USD.
He oro it reversed an intraday slide to the $ 1,867-66 region and could now head towards the upper end of its daily trading range. The commodity was last seen hovering around the $ 1,879-80 region, up around 0.10% on the day.
The discovery of a new strain of coronavirus and the imposition of strict closures / travel restrictions in the UK continue to benefit the status of the US dollar as a global reserve currency. This, in turn, was seen as a key factor that put some pressure on dollar-denominated commodities.
The USD remained high after the US GDP impression for the third quarter was revised upwards to show that the economy expanded at an annualized rate of 33.4% versus the estimated 33.1%. That said, the passage of a long-awaited US stimulus package kept any additional gains for the dollar in check.
The United States Congress on Monday approved a long-awaited $ 892 billion coronavirus aid package, along with a $ 1.4 trillion measure to keep the government funded for another year. The bill is now under Senate review and will become law once U.S. President Donald Trump passes and signs it.
In addition to this, a weaker tone around US Treasury yields helped the underperforming yellow metal attract some buying. However, it remains to be seen whether the commodity can capitalize on the move or continue its struggle to find acceptance above $ 1,900.
Tuesday’s US economic record also includes the release of the Richmond Manufacturing Index, the Conference Board Consumer Confidence Index and existing home sales. The data is unlikely to provide significant impetus as the focus remains on developments related to the coronavirus saga.
Technical levels
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