12/18/2020 6:01:31 PM GMT
XAU/USD capitalized on persistent USD weakness this week.
FOMC s dovish tone and risk-positive mood weighed on the greenback.
100-day SMA at $1,905 aligns as key resistance.
XAU/USD pair climbed to its highest level in a month at $1,896 on Thursday as the selling pressure surrounding the greenback intensified throughout the week. Although the pair lost its bullish momentum on Friday, it settled around 1,880 and still ended up gaining more than 2% on a weekly basis.
What happened last week
The coronavirus vaccine rollout, Brexit optimism and heightened hopes for a US stimulus bill caused risk flows to dominate the financial markets and continued to hurt the greenback. Mirroring the broad-based USD weakness, the US Dollar Index, which tracks the buck’s performance against a basket of six major currencies, broke below 90 for the first time since April 2018. In the meantime, The S&P 500 and the Nasdaq Composite both notched new all-time highs in the se