Gold is flashing green amid gains in the dollar index

  • Gold is on the defensive, possibly due to gains in the greenback.
  • The metal may suffer deeper losses below key rising trendline support.
  • China trade data could influence the dollar index and gold.

Gold is flashing red in Asia, possibly due to gains in the US dollar - gold's biggest nemesis.

At press time, the yellow metal is trading at $1,225 - down 0.25 percent on the day - and the dollar index (DXY) is reporting a 0.20 percent gain at 96.19.

Prices clocked a high of $1,236 yesterday as the greenback was offered in response to Democratic House. The equities, however, remained bid, helping the US dollar regain some poise. The combination of a recovery in the USD and risk-on action in the stocks likely pushed the metal back below $1,230.

Looking ahead, the trendline sloping upwards from the Oct. 9 low and Oct. 31 low could be breached if the China trade data, due in a few minutes, prints below-forecasts, pushing the DXY higher.

Gold Technical Levels

XAU/USD

Overview:
    Last Price: 1224.44
    Daily change: -1.6e+2 pips
    Daily change: -0.133%
    Daily Open: 1226.07
Trends:
    Daily SMA20: 1227.93
    Daily SMA50: 1212.41
    Daily SMA100: 1207.17
    Daily SMA200: 1244.95
Levels:
    Daily High: 1236.6
    Daily Low: 1222.7
    Weekly High: 1237.6
    Weekly Low: 1211.8
    Monthly High: 1243.43
    Monthly Low: 1182.54
    Daily Fibonacci 38.2%: 1228.01
    Daily Fibonacci 61.8%: 1231.29
    Daily Pivot Point S1: 1220.31
    Daily Pivot Point S2: 1214.56
    Daily Pivot Point S3: 1206.41
    Daily Pivot Point R1: 1234.21
    Daily Pivot Point R2: 1242.36
    Daily Pivot Point R3: 1248.11

 

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