Gold Price Analysis: XAU/USD looks firmer and closer to $1,900/oz

• The weak note in the dollar fuels the upside in the yellow metal.
• Focus of attention remains on the upcoming US elections.
• Gold traders also look to the FOMC meeting on Thursday.

Gold prices reverse the initial bearishness and refocus on the upside, trading at shouting distance from the key barrier at the $1,900 mark per ounce troy.

The better tone surrounding the precious metal tracks the upbeat sentiment in the broad risk complex, all so far propped up by the renewed selling pressure in the dollar ahead of the US elections.

Indeed, traders appear optimistic on a Biden win and the potential “blue wave” that it is supposed to follow. Under this scenario, bets of another coronavirus stimulus bill remain high as well as a more market-friendly approach to the US-China trade dispute.

Moving forward, Gold is also focused on the FOMC monetary policy meeting on Thursday, where consensus among investors expects the Federal Reserve to keep the monetary conditions unchanged.

Gold key levels

As of writing Gold is gaining 0.16% at $1,897.08 and a breakout of $1,915.96 (55-day SMA) would expose $1,933.28 (monthly high Oct.12) and finally $1992,63 (monthly high Sep1). On the flip side, the next support emerges at $1,860.00 (monthly low Oct.29) seconded by $1,848.66 (monthly low Sep.24) and then $1,773.35 (200-day SMA).