Gold back in the red on increased risk appetite

Eren Sengezer FXStreet

After another failed attempt to hold above the critical 200-DMA, the precious metal reversed its daily gains and fell back into the negative territory as major US equity indices are showing a good performance ahead of the U.S.House vote.

As of writing, the Dow Jones Industrial Average was up 88 points to 20.749, while the S&P 500 Index gained 12 points to 2,355. On the other hand, the US dollar index is moving sideways around 99.60, suggesting that the pressure on the yellow metal is caused by the high-risk appetite rather than a strong greenback.

Although investors are getting ready for the vote, they may have to wait a little longer as the latest reports suggest that a possible delay could occur. In a recent statement, House Rules Committee Chairman Pete Sessions said the vote could happen as early as Thursday or as late as Monday.

Technical outlook

The yellow metal is losing 0.344% at $1244.40 facing the next hurdle at $1250 (200-DMA) ahead of $1258 (Feb. 28 high) and $1264 (Feb. 27 high). On the slip side, a break below $1242.76 (daily low) could open the door to $1235 (Mar. 20 high) and $1226 (50-DMA).

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.

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