Gold has been increased in its recent advance to the $1,950 level as market volatility slows down and the US election nerves settle into a foregone conclusion of a Democratic Party victory.  The yellow metal recently eased after US election updates suggest President Donald Trump’s lead in Pennsylvanian voting count.

Earlier in Asia, news from Georgia and Arizona marked Joe Biden as the front-runner for the US presidency while keeping his 260+ electoral votes, versus 270 required.

Although fears of a hung decision over the blue wave in America probe the US dollar bears, optimism surrounding further easy money, be it from the central banks or governments, enthuses the global risk sentiment.

As a result, equities and commodities cheered the US dollar’s downside during Thursday before portraying a consolidation so far today. That said, S&P 500 Futures print 0.60% intraday losses.

Further, the Fed’s willingness to boost bond-buying while pushing for a fiscal stimulus fueled further gains in the inflation-hedge, gold.

“Fed Chairman Powell communicated that officials ‘had a full discussion of the options around quantitative easing,’ adding, ‘we understand the ways in which we can adjust the parameters of it to deliver more accommodation if it turns out to be appropriate.’ We expect the case for more accommodation to build as employment growth, and the economy broadly slows in the months ahead.”

XAU/USD 4 Hour Chart:

Support: 1917.0 (S1), 1884.3 (S2), 1866.4 (S3).

Resistance: 1967.6 (R1), 1985.5 (R2), 2018.2 (R3).

All the above catalysts favors yellow metal over dollar and we expect a bullish trend for XAU/USD.