Gold continues to fluctuate below $1290 ahead of Wall Street opening bell
|- US Dollar Index stays calm below 97.
- Wall Street looks to open modestly lower.
The XAU/USD pair is struggling to find direction for the second straight day on Wednesday and waits for a fresh catalyst. As of writing, the pair was trading at $1287, losing $1 on a daily basis.
The unabated greenback strength since last week remains the primary driver of the pair's price action. With the US Dollar Index posting gains in the last six trading days, the troy ounce of the precious metal fell below $1300 and failed to make a meaningful recovery since then. As of writing, the US Dollar Index is sticking to small gains near 96.90 and is looking for the next opportunity to break above the 97 mark.
On the other hand, the S&P 500 Futures is losing 0.23% on the day to suggest that Wall Street is likely to open the day in the negative territory. If the flight-to-safety takes control of the market sentiment in the second half of the day, gold could gain value as a safe-haven.
Later in the session, Fed's Williams will be delivering a speech and the FOMC will publish its Beige Book, which could provide fresh clues regarding the near-term economic outlook in the U.S.
Technical levels to consider
The pair could meet the initial resistance at $1290 (daily high/Mar. 5 high) ahead of $1300 (psychological level) and $1305 (50-DMA). On the downside, supports are located at $1281 (Mar. 5 low), $1276 (Jan. 24 low) and $1266 (Dec. 27 low).
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