- The weak tone around the USD fuels the rise of the yellow metal.
- The focus of attention remains on the upcoming US elections.
- Gold investors are also looking forward to the FOMC meeting on Thursday.
The prices of the gold have reversed the initial downward movement and are back up, extending the rise for the third day in a row and holding near the $ 1,900 level.
The best tone around the precious metal follows the optimistic sentiment in risk appetite, underpinned by renewed selling pressure around the USD before the American elections.
In fact, investors seem optimistic about a Biden win and the potential “blue wave” that it’s supposed to follow. Under this scenario, the expectations of another stimulus bill to fight coronavirus remain high, as well as a more market-friendly approach to the US-China trade dispute.
Going forward, gold investors are also turning their attention to the FOMC’s monetary policy meeting on Thursday, where consensus among investors expects the Federal Reserve to keep monetary conditions unchanged.
Key Gold Levels
At the time of writing, gold is up 0.16% on the day, trading at $ 1,897. A break above $ 1,915 (55-day SMA), would expose $ 1,933 (Oct 12 high) and $ 1,992 (Sept 1 high). On the other hand, the next support is at $ 1,860 (October 29 low), followed by $ 1,848 (September 24 low) and $ 1,773 (200-day SMA).
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Credits: Forex Street
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