He oro it rose $ 18 early Monday, jumping from the region of $ 1,882 to new four-day highs at $ 1,900. Midway through the Asian session, the XAU / USD lost ground, falling towards $ 1,877. At time of writing, the pair is trading above $ 1,883, gaining 0.20% on the day.
The selling bias surrounding the US dollar accelerated on the first day of the new trading week after the president of the United States, Donald Trump to sign the government funding and relief bill of COVID-19. This was seen as one of the key factors that provided a modest increase in dollar-denominated raw material and pushed prices to four-day highs.
The rally, however, lacked follow-up and faltered near the $ 1,900 mark. The US stimulus added to the latest optimism around Brexit and boosted investor sentiment. This was evident from positive trade sentiment around the equity markets, which turned out to be a key factor in limiting gains for the XAU / USD as a safe haven.
Despite two-way price movements, the yellow metal remained within last week’s broader trading range. This, in turn, warrants some caution for aggressive traders and makes it prudent to wait for a sustained move in either direction before positioning for a firm short-term trajectory amid weaker liquidity conditions due to the holidays.
There is no important economic data to move the market, since in the US only the Dallas Fed Manufacturing Business Index is released today. Therefore, broader market risk sentiment and USD price dynamics could continue to play a key role in influencing the XAU / USD. Aside from this, the developments surrounding the coronavirus saga could further help traders seize some short-term opportunities.
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
