- The risk-off environment helped the gold to find the application on Thursday.
- The USD strength keeps the XAU/USD pair is limited upside in the American session.
- A technical break-out seems to have given a further boost to gold.
The XAU/USD pair rose for the third right, on Thursday and touched its highest level since 24 April, to $1,736.47 during the beginning of the American session. Following the impressive rally in the pair has entered a consolidation phase, and was last seen gaining 0.83% on the day to $1,730.70.
Gold breaks out of its range
Earlier today, increased us-China tensions and the poor performance of the main European stock index, boosted demand for safe-haven securities such as gold. In addition, the fact that the XAU/USD has broken above the upper limit of its three-week-old canal to near $1,720 seems to have triggered a new wave upward.
During this time, the us dollar has also capitalized on the risk to the environment, and has outperformed its main rivals. The The US Dollar The Index (DXY), built on Wednesday’s gains, and advanced to a new multi-week top of 100.56 of the cap, the XAU/USD to the upside. As of writing, the pair was up 0.3% on the day at 100.50.
In addition, Wall Street, the major indices opened the day more than 1% of less, is staging a rebound, after the President said they could have a vaccine ready by the end of the year. The recovery of the mood of the market, it is difficult for the pair to push higher. For the moment, the S&P 500 was flat on the day while the Dow Jones Industrial Average was up 0.37%.
In the course of the Asian session on Friday, the market participants will be paying particular attention to the Industrial Production and Retail Sales the data from China. If these dates impact the risk-perception, gold prices could react accordingly.