- XAU / USD prices remain low below their DMA of $ 50 and $ 1,840, despite flows of risk aversion.
- A rally in the DXY below 91.00 appears to keep precious metal bulls in check.
The XAU / USD It hit the highs for the day and tested its 50-day moving average, which is just below $ 1,843 in recent trading, but failed to break above. Currently, the precious metal is trading near the $ 1,840 mark and is modestly bullish, up 0.2% or just under $ 3 on the day.
Gold prices struggle to find a bargain despite the tone of risk aversion
Markets have taken a somewhat off-risk frame of mind on the final trading day of the week, as concerns over lack of progress in Brexit negotiations and US fiscal stimulus begin to weigh on general market sentiment, as well as some negative vaccine production / distribution updates.
As for the latest news on each of these issues, starting with Brexit; UK Prime Minister Boris Johnson has echoed the pessimistic tone of his EU counterparts on the prospects of a deal being reached, saying late Thursday that there is a strong possibility that they will not get a deal. agreement, a message he reiterated on Friday before adding that negotiations remain at a standstill ahead of Sunday’s new de facto deadline for a deal. However, the German foreign minister recently hinted that the talks could go beyond Sunday, seemingly downplaying the importance of this date.
On the US stimulus talks; A breakthrough remains elusive, and Senate Majority Leader Mitch McConnell dampened hopes of a deal last night by saying he sees no path to an agreement on the two main hot spots – aid for states and cities and protection responsibility). Meanwhile, the Senate must vote in favor of a week-long interim funding bill if it wants to avoid the shutdown of the United States government beginning at midnight Friday.
Finally, in terms of the latest vaccine news, while the FDA voted 17 to 4 that the benefits of taking the Pfizer vaccine outweigh the risks for those over 16 and the panel will now consider whether to grant emergency use authorization for the vaccine (all as expected). Sanofi and GlaxoSmithKline announced that they had delayed their program to develop vaccines to enhance the immune response elicited by the vaccine in the elderly.
Given the above, stocks are lower in both Europe and the US, as are bond yields, while the US dollar has recovered somewhat and is now trading modestly below the 91.00 level again. This slight rally in the USD appears to be the main factor preventing a widespread risk-related rally in precious metals.
XAU / USD continues to lateralize within recent ranges, capped by the 50 DMA
XAU / USD prices continue to trade within recent ranges, with price action seemingly limited to around $ 1,850 to the upside, or actually by the $ 50 to $ 1,843 DMA on Friday, while the stock is down. the price finds support at $ 1,820.
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