- Dollar weakness continues to sustain bullish momentum for gold.
- Monday’s Wall Street crash only paused the metal’s rally.
Gold is trading just below $ 1950, at the highest level since early November, after the pullback from Monday’s highs found support at $ 1935.
A combination of supporting factors helped limit the pullback and contributed to its return to the bullish run. The key reason continues to be the weak dollar. In the last hour DXY hit new lows for the day just above 89.50, although it is still on Monday’s floor.
The bags are with mixed results in the world, without major changes compared to Monday’s close. Wall Street had a pullback, which moderated, but without jeopardizing the gold trend. The valuation of the shares, the advance of the coronavirus cases, the elections in Georgia, are events that generate concern. The expectation for the vaccine and the recovery of the economy in 2021 is one of the factors that continues to support the rise in the stock markets.
On Tuesday, in addition to paying attention to the election in the US state of Georgia, the ISM Manufacturing PMI report stands out.
From a technical perspective, XAU / USD uptrend remains strong and continues to point to more gains, even despite overbought indicators. The price is testing the $ 1950 resistance and above it follows the $ 1970/75 zone.