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Greenback remains poised to test gold's $1,850 amid weaker USD, golden cross

December 04, 2020 00:00:00


NEW YORK, Dec 03: Gold gained further ground heading into the European open, sitting at the highest levels in a week at US $1,837 an ounce, report agencies.

The bulls continue to cheer the renewal of the US fiscal stimulus talks, with a much larger than the previously proposed aid package likely on the table for Congress.

Meanwhile, a softer US ADP print combined with novel coronavirus vaccine-driven economic optimism continues to pressure the greenback, rendering gold-positive.

From a near-term technical perspective, gold has confirmed a golden cross formation on the hourly chart, where the bullish 50-hourly moving average (HMA) cut the downward-sloping 200-HMA from below.


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