President Donald Trump's counter-statement today saw a resurgence of pressure on US dollar trading, which had previously strengthened in the New York session.
Initially, Trump, who returned to work in the White House, informed consulting officials to stop discussions on the implementation of the US economic stimulus package and would resume after the election.
The move has increased risk in the market making major currencies traded down while the US dollar as a safe-haven currency strengthened.
The stock and commodity markets were also affected as investors shifted towards safer investments.
However, in the Asian session, Trump issued a counter-statement with a call for the Senate to immediately approve aid for the aviation and small business sectors.
The situation changed again with the US dollar re-trading declining while the stock and commodity markets began to show recovery.
Gold trading soared again in the Asian session after plunging around 450 pips yesterday as shown on the XAU / USD price chart.
Prices plummeted from the high of 1920.00 to the level of 1875.00 before rebounding from the RBS zone (resistance become support).
More than 200 pips of a rise is seen in gold trading today with the expectation that the movement will continue if the US dollar continues to weaken.
The resistance level at the height reached yesterday will be re-tested for the price to reach the latest high level 2 weeks above that level.
However, if the price decline occurs again, the support level of 1875.00 in the RBS zone will be tested again for the price to continue further decline.
A lower decline is seen heading back to the 1850.00 support zone.
