Gold recovers above $1300 ahead of US data
|- US Dollar Index struggles to build on Thursday's gains.
- European stocks post modest gains on Friday.
- Coming up: NY Empire State Manufacturing Index and industrial production from the U.S.
After posting heavy losses and closing the day below $1300 on Thursday, the XAU/USD pair gained traction and recovered a large part of yesterday's fall. At the moment, the pair is trading at $1303, adding $7, or 0.55%, on a daily basis.
The US Dollar Index, which slumped to a 10-day low at 96.40 earlier this week, reversed its course on Thursday but failed to preserve its bullish momentum amid a lack of fundamental drivers that could have boosted the demand for the currency. At the moment, the index is down 0.12% on the day at 96.60. Later in the day, industrial production, capacity utilization, and the UoM Consumer Sentiment Survey from the U.S. will be looked upon for fresh impetus.
Meanwhile, European equity indexes are posting modest gains on Friday and the S&P 500 Futures is rising 0.35% to suggest that Wall Street could gain traction in the last session of the week, which could make it difficult for the pair to continue to push higher. Moreover, markets will be paying close attention to headlines surrounding the U.S.-China trade conflict following yesterday's reports about the U.S. planning to delay the Trump-Xi meeting to the end of April.
Technical levels to consider
The pair could face the first support at $1300 (psychological level) ahead of $1292 (Mar. 14 low) and $1280 (Mar. 7 low). On the upside, resistances align at $1306 (50-DMA), $1315 (Mar. 1 high) and $1322 (Feb. 15 high).
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.