- XAU/USD is rising for the third straight day on Tuesday.
- Wall Street's main indexes are posting impressive gains.
- USD is struggling to find demand as focus shifts to US election.
The XAU/USD pair gained nearly 1% on Monday and has continued to push higher on Tuesday with the greenback facing a heavy selling pressure ahead of the US presidential election. As of writing, the pair was up 0.65% on a daily basis at $1,908.
The risk-on market environment on Tuesday seems to be weighing on the USD more than it does on the precious metal. The US Dollar Index, which touched its best level in more than a month above 94 on Monday, was last seen losing 0.7% at 93.38.
Reflecting the upbeat market mood, Wall Street's main indexes are posting impressive gains on Tuesday. At the moment, the S&P 500 and the Dow Jones Industrial Average indexes are both up around 2.1% on the day.
Previewing the potential impact of the US presidential election outcome on XAU/USD, FXStreet analyst Yohay Elam said "gold heavily depends on stimulus, and the more, the merrier. The optimal scenario is a clean Democratic sweep, followed by a Trump victory. A split between President Trump and the Senate is the worst outcome."
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Technical levels to watch for
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