- Gold seesaws in a $10 range after rallying to the highest since September 21.
- Fed left monetary policy unchanged, Powell sounds dovish.
- Biden leads the race to the presidency despite Trump’s challenges to the counting.
- Election updates remain as the key driver, US NFP can entertain as well.
Gold prices ease from the six-week high to $1,949 amid the initial Asian session on Friday. In doing so, the yellow metal keeps the range between $1,942 and $1,952 established in the last hours of Thursday’s US session. Global markets remained risk-friendly mainly on the American election updates, which in turn helped the bullion to portray the heaviest surge since late-March.
It’s all about US elections…
Despite Democratic candidate Joe Biden’s lead in the electoral votes, currently around 260 counts versus 270 required, US election results aren’t close to any decision. The reason could be traced to President Donald Trump’s lawsuits against multiple states. The latest update from Pennsylvania suggests Trump’s lead gets shrunk over the democratic rival Biden.
With the odds of the Biden presidency have risen off-late, riskier assets, like equities and commodities, cheer stimulus hopes. The greenback got heavily offered and dragged the US dollar index (DXY) to the 12-day low by the end of Thursday’s North American session.
Not only the political news from America but the dovish comments from Federal Reserve Chairman Jerome Powell also weigh on the US currency and helps Wall Street to witness another positive day of blue wave expectations. Further, US 10-year Treasury yields trim recent losses while taking rounds to the one-week low.
Given the present market attention on the US elections, amid a light calendar ahead of the US employment report, nothing matters more than the Biden victory for the gold bulls. However, any surprise positive for Trump & Company can help the counter-trend traders to sneak in for quick profits. Hence, it’s advisable to trade cautiously.
Read: Nonfarm Payrolls Preview: Encouraging data but little action expected
Technical analysis
Unless slipping back below October’s top near $1,931, gold bulls are well-directed towards the mid-September peak surrounding $1,974.
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