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.
Independent 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.