Gold clings to gains above $1260 on modest USD weakness
|- Holiday trading doesn't allow for sharp movements.
- US Dollar Index stays in red below the 97 mark.
- Wall Street to close early on Monday.
The troy ounce of the precious metal added more than $20 last week and brought the total monthly gains of December over $40. With markets already going into the holiday mood, the XAU/USD pair is trading in a relatively tight range on Monday. As of writing, the pair was up 0.5% on the day at $1262.
The sharp sell-off witnessed in the stock markets in the second half of the week following the FOMC's announcements and Chairman Powell's hawkish comments, pushed investors toward safer assets such as the JPY and gold. Major equity indexes in the U.S. suffered heavy losses last Friday and recorded their lowest weekly close of the year. Although stock markets are expected to stay calm, investors will be paying close attention to the risk sentiment ahead of the new year.
On the other hand, the US Dollar ındex failed to break above the critical 97 mark and stayed under a modest pressure on Monday to provide an additional boost to the pair. At the moment, the DXY is down 0.2% on the day at 96.75. In about 20 minutes, Chicago Fed will release its National Activity Index and there won't be any other macroeconomic data releases from the U.S.
Technical outlook
Gold Forecast 2019: Focus on US real interest rates
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.