XAU / USD at new multi-week highs above $ 1,950 level

• A combination of supporting factors helps gold reverse an intraday decline during the Asian session.
• A subdued demand for the USD and a softer risk tone offer some support for the precious metal.
• The bulls now look reluctant ahead of Friday’s NFP release.

The gold has reversed an intraday decline during the Asian session, to the region of $ 1,935, and has risen to new multi-week highs near the $ 1,958 level, at levels not seen since September 18..

The precious metal has managed to attract some lower buying on the last trading day of the week and has been supported by a combination of factors. The US dollar has struggled to maintain its modest gains intraday recovery, which in turn has offered some support to gold prices, denominated in dollars.

The final outcome of the US presidential election remains unclear two days after the polls closed on Wednesday and is dependent on the vote count of the few states left on the battlefield. Waiting for results and high degree of uncertainty prevented USD bulls from opening aggressive positions.

Meanwhile, the possibility of a legal battle could lead to prolonged uncertainty. Aside from this, declining hopes that a major US fiscal stimulus package will support the economy has affected global risk sentiment and has further benefited the yellow safe haven metal.

Despite the support factor, investors could refrain from positioning themselves for a big move in either direction ahead of Friday’s release of monthly US employment data. The NFP report, along with US political developments. ., will influence risk sentiment and could lead to some trading opportunities.