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.

Omkar Godbole FXStreet Contributor

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

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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