XAU/USD advances beyond $1,900 and turns positive on the day
Gold prices are pushing higher during the late US session on Thursday, reaching session highs in the vicinity of $1,910 in spite of the generalized US dollar strength. The precious metal seems to be taking advantage of its safe-haven status in a risk-off session.
XAU/USD has regained lost ground during the US trading session extending its recovery past $1.900 amid a general rush for safety. Investor’s fears about tighter coronavirus restrictions in the world’s major economies and the vanishing hopes of significant progress in the Brexit deal are increasing demand for gold.
Gold Price Analysis: XAU/USD needs fresh push to excel beyond $1,900
Gold eases from the intraday high around $1,909 to $1,907.62 amid the initial Asian session on Friday. In doing so, the yellow metal probes the previous two days’ recovery moves amid consolidation in risk sentiment. Though, the latest pullback doesn’t clear the bullion’s earlier rise on safe-haven demand, mainly backed by the lack of stimulus from the US and the coronavirus (COVID-19) worries emanating from Europe. Also in the line are Brexit headlines and the recent US-China tension.
Even if the US dollar index (DXY) surged to the highest in three weeks on Thursday, gold prices, which generally have a negative correlation with the greenback, didn’t weaken. The reason could be spotted from the ballooning amount of global debt with negative yields, as spotted by macro analyst Holger Zschaepitz.
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