Yellow metal stays positive for the second consecutive day amid US dollar weakness and broad risk-on mood.US President Donald Trump’s obstruction to the bills relating to defense and covid stimulus weigh on the US dollar.

Also weighing on the greenback, while favoring the broad risks and commodities, is US Democratic Party’s readiness to inflation the paycheck amount in the aid package from $600 to $2,000. Furthermore, chatters that the Brexit deal is imminent also favor the bulls.

The UK’s readiness to ease fishing terms offered a great push to the Brexit deal negotiations. While the Cabinet discusses progress on the talks, chatters from reporters of The Guardian and Sky News, not to forget the Daily Express, hints that the deal is imminent. Though, nothing official has crossed the wires off-late.

US President Donald Trump cites Iran’s attack in Baghdad to warn the Arab nation of holding it responsible if one American is killed. The Republican Party member also turned down the defense bill while marking non-friendly relations with China and Russia. Following that, Capitol Hill will amend bills relating to defense and covid aid package, which is less likely to cause any disappointment and favor the upbeat mood.

On the other hand, Data on Wednesday showed the number of Americans filing first-time claims for unemployment benefits unexpectedly fell last week, though remained elevated. Data also showed consumer spending slipped in November for the first time since the recovery from the coronavirus recession started in May and personal income fell 1.1%.Millions of COVID-19 vaccines are sitting unused in U.S. hospitals and elsewhere, putting the government’s target for 20 million vaccinations this month in doubt as pandemic cases in the country top 18 million.

XAU/USD 4 Hour Chart:

Support: 1860.3 (S1), 1847.9 (S2), 1838.8 (S3).

Resistance: 1881.8 (R1), 1890.9 (R2), 1903.3 (R3).

Amidst the US dollar weakness environment, we expect a bullish trend for XAU/USD.