Gold Price Analysis: XAU/USD sideways around $1,900 awaiting US elections’ outcome
- XAU/USD remains sideways around $1,900 amid US elections' uncertainty.
- Gold's upside attempts fail as hopes of US stimulus vanish.
Gold futures have been moving back and forth between $1,880 and $1,910 on Wednesday, before consolidating near $1,9000 with all eyes on the latest developments of the US elections vote counting.
Gold wavers with all eyes on the White House
The yellow metal bounced up after a sharp decline on Thursday’s early trading, as the USD surged across the board after hopes of the blue landslide victory predicted by the polls were frustrated by the tight race between the two candidates.
Trump’s comments claiming the victory immediately after the voting triggered a rush for safety, with the investors closing risky bets and pushing the US Dollar Index to one-month highs.
Bullion pared losses during the European and US trading sessions as the initial volatility receded and risk appetite picked up. Equity markets turned positive after a negative opening in Europe and Wall Street is showing solid advances approaching the closing time, with the Nasdaq 3.7% up and the S&P and Dow Jones Indexes appreciating 2.3% and 1.5% respectively.
The market has welcomed the news reports giving a lead to Joe Biden, who is in a good position to win key states Wisconsin Nevada and Michigan. This has given a fresh impulse to the XAU/USD, yet with upside moves limited as the likelihood of a split congress have dampened hopes of a large stimulus program.
Technical levels to watch