US is facing several challenges like delay in the much-awaited US corona virus (COVID-19) aid package, the surge in the pandemic, and delay in American Presidential Election and devastating GDP figures which makes dollar to struggle.

As of July 30, more than 4.5 million cases have been confirmed in the U.S., There have been more than 150,000 deaths. The latest virus update from the US suggests that Texas marked the record deaths of 322 with a 62% rise in hospitalization on Thursday. US President Donald Trump showed worries for the rapid increase but refrained from entertaining the case of a long-term shutdown.

Trump seeks to delay the elections, alleging that the universal mail-in voting system would be ripe with fraud and that the elections should be held when it is safe to do so.  Trump said in his tweet that, “With Universal Mail-In Voting (not Absentee Voting, which is good), 2020 will be the most INACCURATE & FRAUDULENT Election in history. It will be a great embarrassment to the USA. Delay the Election until people can properly, securely, and safely vote???”

Furthermore, the US Senate members are showing mixed signs concerning the trillion-dollar worth fiscal package as the White House Chief of Staff Mark Meadows recently said that he is not even optimistic about any bill in the near-term.

Real gross domestic product (GDP) decreased at an annual rate of 32.9 percent in the second quarter of 2020, according to the “advance” estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP decreased by 5.0 percent.

Gold prices ease to $1,957 during the early Asian session on Friday. The quote managed to portray the first negative daily closing in 10-days on Thursday 1955.9. But the yellow metal managed to rise by Friday. And to be noted US dollar index (DXY) drop to the fresh low since May 2018.

XAU/USD 4 Hour Chart:

Support: 1940 (S1), 1924.2 (S2), 1908.9 (S3).

Resistance: 1971.2 (R1), 1986.5 (R2), 2002.4 (R3).

In the prevailing negative atmosphere for US Dollar, The yellow metal gains strength. We expect a bullish move for XAU/USD.