Gold continues its downtrend, after breaking through its consolidation, as it retraces to the Fibonacci 786 this week. As it continues lower, it encounters the Daily 200 Moving Average. This may indicate a compression in price action between 1860.00 and 1800.00.
With the current risk-off sentiment with regards to the latest developments of the pandemic, Gold may be posted to go further higher. Furthermore, with Brexit looming just around the corner and with no solid end in sight, investors may see Gold as the go-to safe haven that they have relied on historically.
As the year comes to a close, the US Dollar hinges on a few factors. With current political turmoil brewing in the United States as SCOTUS denies Texas’ lawsuit, this news will be factored in upon Monday’s opening of the market. In addition, the long-term outlook of the US Dollar will hinge upon the FOMC’s final meeting of the year. A dovish outlook may continue to spell out the weakness of the US Dollar.