Gold Price News and Forecast: XAU/USD looks to build on 2020 gains with central banks staying dovish

Gold Price Analysis: XAU/USD buyers eye $1,900 as US Pres. Trump teases ‘good news’ on covid relief bill

Gold prices waver around $1,890-88, up 0.45% intraday, during Monday’s Asian session. That said, the yellow metal jumped from last week’s close of near $1,880 to around $1,891 at the week’s start as traders initially reacted to the Brexit deal passage.

Having initially stepped back from signing the coronavirus (COVID-19) relief bill, already passed by the Congress, US President Donald Trump recently tweeted ‘good news’ on the much-awaited aid package. In the latest update, the Washington Post said Capitol Hill members are ready to “make one last attempt to avert a shutdown on Monday.”

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Gold Price Forecast 2021: XAU/USD looks to build on 2020 gains with central banks staying dovish

The XAU/USD pair started 2020 a little above $1,500 and climbed all the way up to $1,700 by the end of February. During the first couple of months of the year, the selling pressure surrounding the USD helped the pair gain traction. The dovish shift witnessed in the US Federal Reserve (Fed) monetary policy in the second half of 2019 caused the greenback to weaken against its rivals in early 2020. In July, September and October of 2019, the Fed decided to cut its policy rate, federal funds rate, by 25 basis points in each meeting and lowered it to 1.75% from 2.5%.
 
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