Listen to the latest market mood for the XAUUSD pair.
The rise in gold to take out all-time highs has been supported by the following three things:
- A weak dollar. Fears of a fiscal cliff this week from the US are keeping the dollar weak on the session and this has bolstered gold.
- A technical break of the all-time highs in gold opens up the $2000 region.
- Rising US-China tensions and COVID-19 cases also supports the purchase of gold as a hedge.
Therefore expect gold buyers today on any pullback to $1900.
Day trade outlook – We expect this trade to play out over the next 12 hours.
Trade Risks: If there is strong risk aversion that could result in some gold long positions being liquidated to offset stock losses.