The US dollar is losing ground to other major currencies during early Wednesday trading, with the index that measures the performance of the greenback reaching the lowest point since April 2018. Investors are walking away from the safe-haven dollar and embracing riskier assets, as hope of better days ahead continue to grow. The renewed optimism is driven by the prospect of more COVID vaccines being approved for use and a more stable political environment in Washington supporting hopes of an economic stimulus package being agreed.
Gold is extending its gain but, more crucially, has once again jumped above the resistance zone of $1,850. A weak greenback, with EUR/USD trying to force the 1.22 barrier and the Dollar Index falling to 90, is helping gold in its recovery while the short-term scenario is regaining momentum. The first target for bullion is the key zone of $1,872-$1,875, with the next resistance placed at $1,900, which is the “post vaccine” highest level for gold.
Carlo Alberto De Casa – Chief analyst, ActivTrades
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Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.
