Gold pushes higher toward $1230 as Wall Street stays in red
|- Uncertainty surrounding China - U.S. trade conflict weighs on the sentiment.
- US Dollar Index fails to surpass 97, goes into consolidation ahead of FOMC minutes.
After staying quiet near $1225 during the European trading hours, the XAU/USD pair gained traction in the last hour and rose to a fresh daily high of $1228. As of writing, the pair was trading at $1227, adding a little more than $6, or 0.5%, on a daily basis.
Earlier in the session, the data published by the U.S. Bureau of Economic Analysis showed that the annual core PCE price index, which excludes volatile food and energy prices, rose 1.8% in October to fall short of the market expectation of 1.9%. However, the report also revealed that personal spending and personal income both increased more than expected on a monthly basis to help the greenback limit its losses.
Before the FOMC releases the minutes of its November meeting, the US Dollar Index is down 0.1% on the day at 96.73.
On the other hand, major equity indexes in the U.S. started the day in the negative territory and extended their decline in the first half of the session as investors are trying to assess US President Trump's remarks on the trade conflict. After saying that there was "a long way to go" on China tariffs, Trump told reporters that they were "close to doing something" with China on trade to confuse investors. At the moment, the Dow Jones Industrial Average is down 0.55% on the day while the S&P 500 is erasing 0.6%.
Technical levels to consider
The initial resistance for the pair aligns at $1230 (Nov. 21 high) ahead of $1237 (Nov. 1 high) and $1243 (Oct. 26 high). On the downside, supports are located at $1220 (daily low/50-DMA), $1211 (Nov. 28 low) and $1206 (Nov. 9 low).
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.