Gold Price Analysis: XAU/USD teases $1,888 hurdle on the way to $1,907 – Confluence Detector

Gold prices remain positive for the second consecutive day, currently up 0.27% intraday to $1,884, during the early Wednesday. The yellow metal recently benefited from the broad US dollar weakness amid uncertainty over the American coronavirus (COVID-19) aid package and first case of the covid variant in Colorado.

Following the initial drama over blocking the $2,000 paycheck, Senate Majority Republican Leader Mitch McConnell put forward the much-awaited stimulus bill while adding legislation about social media companies and election fraud studies to the proposal for votes.

While the hesitant move couldnt disappoint market bulls, comments from the US Treasury Secretary that $600 paychecks, agreed by the Congress, will be out tonight, strengthened the mood and weighed on the US dollar index (DXY), down 0.25% to 89.78 now.

Also on the negative side for the US currency, positive for the yellow metal, could be the first case of covid strain in Colorado, with no travel history, as well as Chinas readiness to return two Hong Kong activists out of 12 details over the border crossing.

Looking forward, the yellow metal traders will keep eyes on the updates from the US Senate as well as virus headlines for fresh impulse ahead of the North American session comprising second-tier activity and housing data for November and December respectively.