Gold has been on a roll, hitting the highs of $2,046.44 at the time of writing. What's next for XAU/USD? Fundamentally, the precious metal depends on more fiscal stimulus from Washington – as Republicans and Democrats are inching closer to a larger package.
Another factor to watch is economic data, and clues toward Friday's Non-Farm Payrolls. The recent resurgence of coronavirus may push the economy lower and raise interest for gold.
How is XAU/USD technically positioned?
The Technical Confluences Indicator is showing that gold faces resistance at $2,045, which is the convergence of the previous 4h-high and the Bollinger Band 15min-Upper.
The most significant hurdle awaits XAU/USD at $2,055, which is the confluence of two pivot points – the one-month REsistance 1 and the one-day Resistance 2.