Gold Price Analysis: XAU/USD consolidates last week's gains around $1,810
- XAU/USD is trading in a tight range at the start of the week.
- Major European equity indexes are trading mixed on Monday.
- Gold is likely to remain quiet in the remainder of the day.
The troy ounce of the precious metal closed the sixth straight week in the positive territory last Friday and started the new week in a calm manner. As of writing, the XAU/USD pair was virtually unchanged on a daily basis at $1,810.
Risk sentiment to continue to impact USD's performance
The broad-based selling pressure surrounding the greenback helped XAU/USD pair push higher in the second half of the previous week. The positive market environment, as reflected by rising global equity indexes, made it difficult for the greenback to find demand as a safe-haven and the US Dollar Index (DXY) closed the fourth straight week in the red.
On Monday, market sentiment looks mixed with the UK's FTSE 100 losing 0.65% and the Euro Stoxx 50 and Germany's DAX 30 gaining 0.12% and 0.32%, respectively. Nevertheless, the DXY posts small daily losses below 96, not allowing XAU/USD to turn south.
There won't be any significant macroeconomic data releases in the remainder of the day and investors will focus on Wall Street to get a sense of markets' risk perception. At the moment, the S&P 500 futures are down 0.3% on the day. If major equity indexes edge lower on Monday, the USD could start gathering strength and cause XAU/USD to lose its traction.
Technical levels to watch for
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.
