The dollar remains under pressure amid the Fed's extra soft monetary policy and investor optimism betting on further growth in the stock market and ignoring information about the increase in the incidence of Covid-19 and the detection of a new strain of coronavirus in Europe.
The dollar is known to enjoy the status of a defensive asset. However, in the current situation, investors prefer gold, whose quotes are growing again on Wednesday, remaining in the bull market zone.
As of this writing, the XAU / USD pair is traded near 1867.00 mark, above important short-term support levels passing through 1865.00, 1861.00 marks (see "Technical Analysis and Trading Recommendations").
In case of further growth and breakdown of the local resistance level of 1907.00 (December highs), XAU / USD will go towards the October highs and the 1933.00 mark, and then towards the November highs and the 1963.00 mark.
The next targets are located at the local resistance levels 1976.00, 2010.00, 2075.00 (absolute maximum). But that's probably the story for next year.
In an alternative scenario, a breakdown of the 1861.00 support level will be a signal for the resumption of XAU / USD sales.
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