- Gold moved slightly higher for the fourth day in a row Friday amid a sustained selloff of the USD.
- Hope for further US fiscal stimulus and pessimistic expectations from the Fed continue to weigh on the USD.
- Optimism over the COVID-19 vaccine weighs on the safe haven precious metal and limits earnings ahead of the NFP.
The prices of the oro They move with a slight positive bias during the European session on Friday, staying close to the two-week highs just below the $ 1,845 level.
The precious metal has built on this week’s good rally, from the region of $ 1,764 at a five-month lows, and has moved higher for the fourth day in a row on Friday. The rebound has been supported by prevailing bearish sentiment around the US dollar, which tends to benefit the prices of dollar-denominated commodities, such as gold.
The DXY Dollar Index Hovers Near a Two-and-a-Half-Year Low Amid Rising expectations for a new relief package for the coronavirus in the US and monetary easing by the Fed. In fact, US House Majority Leader Steny Hoyer said Wednesday that he hopes to see a deal on another fiscal stimulus package in principle as soon as this weekend.
Investors now seem convinced that the Fed will expand its bond purchase program in December amid concerns about the economic consequences of the imposition of recent COVID-19 restrictions in several US states This, along with a modest pullback in Treasury yields Americans have further boosted monetary flows towards the yellow metal.
Having said that, optimism about the launch of a coronavirus vaccine has limited any uncontrolled upward movement for the safe-haven XAU / USD. The bulls have also refrained from opening aggressive positions, preferring to wait on the sidelines before the release of the monthly US NFP jobs report on Friday.
The NFP is expected to show that the US economy added 469,000 new jobs in November and the unemployment rate is expected to decline to 6.8%. Any significant divergence from the expected number will infuse some volatility and could lead to significant trading opportunities around the XAU / USD on the last day of the week.
Technical levels of gold
.
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.
