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It’s been a disappointing week for gold bulls. Following some strength midweek, gold flows have since reversed and are now back to around flat on the week, as of writing.
The main driver for gold prices this week has been the movement in the US dollar.
The greenback has been under firm pressure over much of the week as uncertainty ahead of the US elections, as well as hopes of a fresh stimulus package, have weighed on sentiment.
However, a rebound on Thursday interrupted the bullish move in gold. In the near term, there is plenty of scope for gold prices to continue to appreciate.
With uncertainty likely to rise as we head closer to the election, as well as the prospect of a Biden win, the outlook for the dollar has plenty of downside risks built-in.
Alongside this, the rising fears around the growing second wave of COVID mean that gold is likely to retain plenty of safe-haven demand.
Gold Capped By Resistance
For now, gold prices remain capped by the 1919.92 level resistance. W...
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