- The XAU / USD remains sideways around $ 1,900 amid the uncertainty of the US elections.
- Gold’s upward attempts fail as hopes for an American stimulus fade.
Gold futures They moved back and forth between $ 1,880 and $ 1,910 on Wednesday, before consolidating near $ 1,900 with all eyes on the latest developments in the US election vote count.
Doubtful gold with all eyes on the White House
The yellow metal rallied after a sharp drop in early trading on Wednesday, as the dollar rallied across the board after hopes of the blue overwhelming victory predicted by polls were dashed.
Trump’s comments claiming victory immediately after the vote triggered a race for safety, with investors closing risky bets and pushing the US dollar index to month-long highs.
Gold trimmed losses during the European and US trading sessions as initial volatility waned and risk appetite recovered. Equity markets turned positive after a negative open in Europe and Wall Street shows solid gains approaching close, with the Nasdaq rising 3.7% and the S&P and Dow Jones indices appreciating 2.3% and 1.5% respectively.
The market has welcomed news reports giving Joe Biden a head start, who is well positioned to win over key states like Wisconsin, Nevada and Michigan. This has given XAU / USD new momentum, but with limited bullish movements as the likelihood of a divided congress has lowered hopes for a major stimulus program.
Credits: Forex Street
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