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  • Gold has best days in months, up almost 3%.
  • US dollar tumbles as Wall Street soars ahead of FOMC, NFP but looking at the election.

Boosted by a decline of the US dollar across the board, XAU/USD jumped to $1952, reaching the highest level since September 21. It then pulled back, and it is trading at $1945, up almost 3%, having the biggest daily gain in two months.

The US Dollar is falling sharply across the board, and particularly over the last hour against commodity currencies. At the same time, equity prices continue to rally in Wall Street. The Dow Jones is up by 1.95% and the Nasdaq by 2.30%. The DXY fell to test October lows at 92.45 and remain under pressure.

Market participants await updates from the vote count in the US election. US President Trump said will legally challenge all recent states claimed by Biden. “All of the recent Biden claimed States will be legally challenged by us for Voter Fraud and State Election Fraud. Plenty of proof – just check out the Media. WE WILL WIN! America First!”, the President tweeted.

The FOMC will announce its decision at 19:00 GMT. No change in the monetary policy stance is expected. On Friday, the Non-farm payroll report is due.

XAU/USD Technical outlook

From a technical perspective, gold is holding firm above key moving averages and also above October highs, supporting further gains. The next resistance above $1950 is seen at the $1975 area. The upside momentum will likely remain in place as long as it holds above $1930. A slide back below $1895 would weaken the outlook, favoring more losses.