- Gold appreciates to levels near $1,910 and turns positive on the day.
- Investors’ concerns about COVID-19 and Brexit have boosted demand for gold.
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.
Brexit and COVID-19 fears pushing gold higher
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.
London has banned people from different households to meet indoors after the Department of Health reported 19,000 new infection and 138 deaths on Wednesday. The French capital has introduced a curfew from 9 p.m. to 6 a.m, a measure that also affects to other cities like Aix-Marseille, Grenoble, Montpellier, Toulouse, Saint Etienne, Lille, Rouen and Lyon.
Regarding the Brexit talks, the obstacles between the UK and the EU are becoming more evident, with the positions about fisheries and fair competition and dispute resolution issues still far apart. Against this backdrop, the market is starting to anticipate that, if an agreement is reached, it will be a minimal one.
In the US, the remote chances of any fiscal stimulus agreement before the presidential elections, due on November 3, and the negative US data seen on Thursday have increased support for gold futures.
Weekly unemployment claims increased by 59,000 last week, to a total amount 898,000, adding evidence that the US labour market is losing strength. Beyond that, the New York industrial activity index reading disappointed, revealing that the industrial sector is still far from the levels it was before the coronavirus shutdown.
Technical levels to watch
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