Gold erases daily upside, sits comfortably above $1400
|- Wall Street stays flat on Monday as focus shifts to Q2 earnings.
- US Dollar Index recovers small part of last week's losses.
Despite a drop below the critical handle of $1400 last week, the troy ounce of the precious metal closed at $1415 but failed to push higher on Monday. As of writing, the XAU/USD pair was trading at $1410, losing nearly $5 on a daily basis.
The greenback's modest recovery attempt on Monday seems to be making it difficult for the pair to gain traction. After posting a weekly loss of 0.5% amid the cautious commentary of the FOMC Chairman Powell's on the economic outlook at the semi-annual testimony before the Congress, the US Dollar Index is climbing higher toward the 97 mark today and was last up 0.2% on the day at 96.92.
Earlier today, the Federal Reserve Bank of New York's Empire State Manufacturing Index came in at 4.3 in July following June's disappointing reading of -8.6 and helped the greenback gather strength in the second half of the day.
On the other hand, major equity indexes in the U.S. are staying flat on Monday as investors are gearing up for the second quarter earnings figures and the 10-year U.S. Treasury bond yield is correcting last week's upsurge, hinting at a mixed market sentiment that allows gold to limit its losses for the time being.
Technical levels to watch for
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