The dollar is losing ground to the Euro and the Pound during early Friday trading, as a resurgence in risk appetite followed news that Nancy Pelosi and Steven Mnuchin restarted talks in Washington over a much-needed economic stimulus package. Meanwhile, Joe Biden’s lead in the polls is making the possibility of a clear-cut indisputable election win more likely, with investors increasing appetite for risk reflecting the pricing-in of a smooth transition of power.
As the dollar weakens, gold prices are rallying above $1,900 and nearing the first resistance area of $1,920. Hopes for further fiscal stimulus and expectations for other central bank interventions – maybe not in the immediate future, but in 2021 – are keeping an historical high attention on gold.
From a technical point of view, we are seeing a recovery of strength of gold, which is continuing its rebound from the key support zone of $1,850-1,860. As long as prices remain above this threshold the trading range of the last two months, between $1,850 and $2,070, remains valid, while the main trend remains supportive for bullion.
Carlo Alberto De Casa – Chief analyst, ActivTrades
Disclaimer: opinions are personal to the authors and do not reflect the opinions of LeapRate. This is not a trading advice.
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.
