Gold keeps rallying amid weak dollar

Gold keeps rallying amid weak dollar

2020-10-05 • Updated

The yellow metal is boosted by the poor performance of the USD. What is the forecast?

Fundamentals

On Friday, US President Donald Trump announced that he had been positively tested on Covid-19. As a result, the market sentiment deteriorated immediately. Then, the downbeat NFP came out, driving safe-haven currencies to the upside, especially the Japanese yen and the US dollar.

However, today investors have been encouraged by optimistic comments on Trump’s recovery, their confidence strengthened. Consequently, the greenback waned and gold rose. Indeed, the main driver of XAU/USD is the dollar, which is quite volatile amid upcoming presidential elections, which are scheduled for November 3. Besides, continuing fiscal stimulus talks weigh on the market sentiment. Republicans argue for $1.5 trillion, while Democrats insist on $2.2 trillion. 

“There is need for new stimulus measures to rally (gold) prices. Without this mojo, there are signs of fatigue creeping into precious metals,” according to Phillip Futures.

Technical tips

Gold has approached a key resistance of $ 1910. This level was acting as strong support since August, but now it plays a role of resistance. If it manages to break it, the doors towards the upper trendline at $1 920 will be open. The way above $1 920 will confirm further bullish momentum and drive the yellow metal upwards to a high of early August at $1 940. On the flip side, if it falls below the key psychological mark of $1 900, the way to September’s dips of $1 850 will be clear.

XAUUSDDaily.png

XAUUSDH4.png

TRADE NOW

Similar

Pfizer revealed strong Q1 earnings
Pfizer revealed strong Q1 earnings

Pfizer, a huge pharmaceutical company and one of the vaccine makers, has published better-than-expected earnings results for the first quarter of 2021.

BOE may go hawkish on May 6
BOE may go hawkish on May 6

Bank of England will make a policy statement on Thursday at 14:00 MT (GMT+3). It’s widely expected that the bank may taper its quantitative easing programme, by cutting asset purchases.

Latest news

ALIBABA: unclear future
ALIBABA: unclear future

On Wednesday, at 14:30 GMT+3 Alibaba reports its quarterly earnings. Will they push the stock?

Deposit with your local payment systems

Learn more

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in 00:30:00

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera