Gold holding steady around daily highs amid falling stock prices
After surging to a new daily high at $1253.64, the precious metal started to consolidate its earnings in the last hour and is now being priced at $1252.40, $3.36 higher from the last week's closing level.
Although the major equity indices in the United States started the day flat, they came under pressure as the weak vehicle sales weighed on the car manufacturers' shares, dragging the indexes lower. As the time of writing, the Dow Jones Industrial Average was down 0.40% while the broader S&P 500 lost 11 points or 0.45%, making the safe-haven precious metal more attractive.
Furthermore, the US Dollar Index can't gather enough momentum to stay above 100.50, making it harder for the XAU/USD to make a deeper correction. Also, the mixed macro data failed to provide a fresh impetus. At the moment, the index is up a 0.03% at 100.45.
- US: PMI shows growth in manufacturing for the seventh consecutive month - ISM
- US: Manufacturing growth slows to six-month low in March - Markit
Technical levels to watch
To the downside, support levels for the XAU/USD could be seen at $1245.35 (200-DMA), $1234.40 (50-DMA) and $1227 (Mar. 21 low). On the upside, the first hurdle is aligned at $1253.64 (daily high) followed by $1261 (Mar. 27 high) and $1270 (upper Bollinger band).
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.
