Gold inches lower toward $1270, looks to renew 2019 lows
- Trading action remains subdues as investors return from Easter break.
- US Dollar Index posts modest gains above 97.30.
- Coming up: New home sales, Housing Price Index, and Richmond Fed Manufacturing Index from the U.S.
After recording its lowest weekly close of the year last Friday at $1275, the XAU/USD pair stayed relatively quiet on Monday amid the Easter holiday and is posting modest losses today as sellers remain in control. As of writing, the pair is trading at $1272.87, losing a little more than $2 on the day and stays dangerously close to the 2019-low that was set at $1271 last week.
Although the escalating geopolitical tension following the U.S. decision to ending exemptions to Iran sanctions seems to be hurting the risk appetite, major European equity indexes trade mixed, pointing out to neutral sentiment that makes it difficult for the precious metal to capitalize on risk-off flows. Meanwhile, the S&P 500 Futures is down 0.1% ahead of the Wall Street opening bell, suggesting that the U.S. stocks could open modestly lower.
On the other hand, ahead of today's mid-tier macroeconomic data releases from the U.S., the US Dollar Index is edging higher in the session, keeping the bearish pressure on the pair intact. At the moment, the DXY is up 0.06% on a daily basis at 97.35. Later in the day, new home sales, the Housing Price Index, and the Richmond Fed's Manufacturing Index will be looked upon for fresh impetus.
Technical levels to consider
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.
