XAU / USD dips below $ 1,900 before US data.

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  • XAU / USD is trading in a tight range below $ 1,900 on Thursday.
  • Wall Street seeks to open the day in the red.
  • The US Dollar Index rises to new weekly highs above 93.70.

The pair XAU / USD It closed modestly higher above $ 1,900 on Wednesday but struggled to push higher on Thursday as bitter market sentiment helped the dollar gain strength. At time of writing, the pair was down 0.35% on the day at $ 1,895.20.

USD capitalizes on risk aversion

Lack of progress in the US stimulus negotiations and renewed fears about the growing number of coronavirus cases causing nationwide lockdowns in Europe weighed on risk sentiment Thursday.

Reflecting the gloomy mood of the market, the major European stock indices are losing between 1.75% and 2.7% on the day. Meanwhile, S&P 500 futures are down nearly 1%, suggesting that major Wall Street indices are likely to start the day in negative territory.

If risk aversion flows continue to dominate financial markets in the second half of the day, the dollar could retain its strength and force the XAU / USD to push lower. At the moment, the US Dollar Index (DXY) is at a fresh weekly high of 93.73, gaining 0.35% on the day.

The US economic agenda will include the New York Empire State Manufacturing Index, weekly data on initial job applications and the Philadelphia Fed Manufacturing Survey on Thursday. However, investors are likely to ignore these reports and remain focused on the perception of risk.

Technical levels

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Credits: Forex Street

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