- Moderate USD demand helps gold gain traction and move away from month-long lows.
- Rising US bond yields and underlying risk appetite could limit any strong bullish movement.
He oro has moved higher on Tuesday and is holding onto gains near daily highs, around the region of $ 1,860, at the start of the European session.
The precious metal has built on the previous day’s rebound from lows of more than a month around the $ 1,817 region, and has gained some positive traction during the first half of trading action on Tuesday. The rally has allowed XAU / USD break four consecutive days of losing streakAlthough a combination of factors could limit any uncontrolled bullish movement.
The US dollar is consolidating its recent strong gains, which in turn is seen as one of the key factors that has offered some support to gold prices, denominated in dollars. This, along with political turmoil in Washington and growing market concerns about the continued rise in new coronavirus cases around the world, they have endorsed the safe-haven XAU / USD.
It is worth reporting that the Democrats of The House of Representatives plan to impeach US President Donald Trump on Wednesday unless you resign or are removed from office before that date. That said, the current rally in US Treasury yields, amid hopes for additional fiscal stimulus in the US, should help jump-start demand for the USD and limit any significant gains for the dollar. yellow metal.
Meanwhile, expectations that President-elect Joe Biden would push for a multi-trillion dollar stimulus package they have continued to support underlying bullish sentiment in global financial markets. This could further help limit gains for XAU / USD amid the absence of relevant economic releases from the US.
Even from a technical perspective, the sustained breaking of last week’s rising wedge could have turned the short-term bias in favor of bears. This makes it prudent to wait for strong continuation buying before confirming that the XAU / USD has bottomed out and positioned for any further bullish movements.
Technical levels of gold
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