- Uncertainty surrounding China - U.S. trade conflict weighs on the sentiment.
- US Dollar Index fails to surpass 97, goes into consolidation ahead of FOMC minutes.
After staying quiet near $1225 during the European trading hours, the XAU/USD pair gained traction in the last hour and rose to a fresh daily high of $1228. As of writing, the pair was trading at $1227, adding a little more than $6, or 0.5%, on a daily basis.
Earlier in the session, the data published by the U.S. Bureau of Economic Analysis showed that the annual core PCE price index, which excludes volatile food and energy prices, rose 1.8% in October to fall short of the market expectation of 1.9%. However, the report also revealed that personal spending and personal income both increased more than expected on a monthly basis to help the greenback limit its losses.
Before the FOMC releases the minutes of its November meeting, the US Dollar Index is down 0.1% on the day at 96.73.
On the other hand, major equity indexes in the U.S. started the day in the negative territory and extended their decline in the first half of the session as investors are trying to assess US President Trump's remarks on the trade conflict. After saying that there was "a long way to go" on China tariffs, Trump told reporters that they were "close to doing something" with China on trade to confuse investors. At the moment, the Dow Jones Industrial Average is down 0.55% on the day while the S&P 500 is erasing 0.6%.
Technical levels to consider
The initial resistance for the pair aligns at $1230 (Nov. 21 high) ahead of $1237 (Nov. 1 high) and $1243 (Oct. 26 high). On the downside, supports are located at $1220 (daily low/50-DMA), $1211 (Nov. 28 low) and $1206 (Nov. 9 low).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD remains under pressure above 0.6400
AUD/USD managed to regain some composure and rebounded markedly from Tuesday’s YTD lows in the sub-0.6400 region ahead of the release of the Australian labour market report on Thursday.
EUR/USD faces decent contention around 1.0600
The knee-jerk in the Greenback reignited some buying interest in the risk complex and pushed EUR/USD to three-day highs near 1.0680, rapidly leaving behind the recent yearly low around 1.0600.
Gold eases despite risk-off mood
Gold trades in a relatively tight range near $2,390 in the second half of the day on Wednesday. In the absence of high-tier data releases, investors keep a close eye on headlines surrounding the Iran-Israel conflict.
Ethereum trades around the $3,000 support following a surge in validator queue
Ethereum (ETH) continued a sideways movement on Wednesday as investors seemed to be waiting for an upward or downward price catalyst. Despite the price stagnancy, the ETH validator queue - possibly fueled by the DeFi restaking boom - rose sharply.
Markets stabilize after Powell rules out rate hike, but the signs don’t look good
Markets are volatile right now; however, a relative calm has descended on the market and US. US stocks are down a touch, but the Vix is lower, US Treasury yields are lower, and the dollar is mostly lower vs. its G10 FX counterparts.