XAU / USD jumps to $ 1,950 for the first time since mid-September

• Gold has the best day in months, up 3%.
• The US dollar falls as Wall Street rises before the FOMC, NFP, but looking at the elections.

Driven by a fall in the US dollar across the board, the XAU / USD jumped to $ 1,952, reaching the highest level since September 21. It then fell back, and is trading at $ 1,945, up almost 3%, with the biggest daily gain in two months.

The US dollar is falling sharply across the board, and particularly over the past hour against commodity currencies. At the same time, stock prices continue to rise on Wall Street. The Dow Jones is up 1.95% and the Nasdaq 2.30%. The DXY fell to test the October lows at 92.45 and remains under pressure.

Market participants await updates to the vote count in the US elections. US President Trump said he will legally challenge all recent states claimed by Biden. “All the states recently claimed by Biden will be legally challenged by us for voter fraud and state electoral fraud. Many tests, just check the media. WE WILL WIN! America First! ”The president tweeted.

The FOMC will announce its decision at 19:00 GMT. No changes are expected in the monetary policy stance. The non-farm payroll report will be released on Friday.

Technical perspective

From a technical perspective, gold is firm above key moving averages and also above October highs, supporting further gains. The next resistance above $ 1,950 is seen at the $ 1,975 area. The bullish momentum will likely remain in place as long as it remains above $ 1,930. A pullback below $ 1895 would weaken the outlook, favoring further losses.

Additional technical levels