- Gold keeps Wednesday’s gains despite recent pullback from intraday high
- Brexit optimism, hopes of US stimulus favor market’s mood amid the quiet session
- EU-UK statements, US Congress moves eyed for fresh impulse before Christmas
Gold prices ease from the intraday top near $1,880 to $1,876 during early Thursday. Even so, the yellow metal stays positive for the second consecutive day amid US dollar weakness and broad risk-on mood
US President Donald Trump’s obstruction to the bills relating to defense and covid stimulus weigh on the US dollar index (DXY) that drops 0.13% by press time
Also weighing on the greenback, while favoring the broad risks and commodities, is US Democratic Party’s readiness to inflation the paycheck amount in the aid package from $600 to $2,000. Furthermore, chatters that the Brexit deal is imminent also favor the bulls
Even so, US President Trump’s warning to Iran and the on-going coronavirus (COVID-19) woes in the UK challenge the risk-on mood. Additionally, dull trading session amid the holidays season restricts the market moves
Against this backdrop, S&P 500 Futures join Asia-Pacific stocks to print mild gains
Looking forward, policymakers from the European Union (EU) and the UK are up for delivering Brexit statements early in the European session. Should they manage to meet the market expectations, risk-on will continue to favor gold prices
Following that, Capitol Hill will amend bills relating to defense and covid aid package, which is less likely to cause any disappointment and favor the upbeat mood
Overall, gold prices are likely to end the year 2020 on a positive note. Though the US dollar is near a multi-month low and a bounce can consolidate the yellow metal’s gains
Technical analysis
Considering the resistance to confirm the short-term rising wedge, with a downside break below $1,864, gold prices head towards the 100-day SMA level near $1,900