Gold advances to fresh daily highs near $1,810
- Gold gains traction after breaking above $1,800 in early American session.
- USD struggles to find demand for second straight day.
- Wall Street's main indexes trade in the positive territory.
The XAU/USD pair closed the first day of the week with small gains above $1,800. After spending the European session moving sideways in a tight channel, the pair turned north on broad USD weakness during the American session. As of writing, the troy ounce of the precious metal was trading at fresh daily highs at $1,810, gaining 0.4% on the day.
USD selloff lifts XAU/USD on Tuesday
The inverse correlation between the US Dollar Index (DXY) and Wall Street remains intact on Tuesday. The poor start to the day in major equity indexes in the US helped the DXY rebound to 96.50 area in the early American session. However, upbeat second-quarter earnings from large US banks and surging energy shares provided a boost to equity markets.
With the S&P 500 (SPX) paring early losses and climbing into the positive territory, the greenback lost interest. At the moment, the SPX and the Dow Jones Industrial Average are up 0.65% and 1.38%, respectively, while the DXY is down 0.3% at 96.22.
There won't be any significant macroeconomic data releases in the remainder of the day or during the Asian session on Wednesday. Risk sentiment is likely to continue to drive the pair's movements in the near-term.
Technical levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
