Gold rebounds modestly from 10-day lows, trades below $1290
- European stocks post small gains on Monday.
- US Dollar Index stays quiet below 97.
- Coming up: NY Fed's Empire State Manufacturing Index.
After closing the previous week with a small $1 loss, the troy ounce of the precious metal continued to lose value in USD terms with the XAU/USD pair slumping to its lowest level in 10 days at $1285.50. As of writing, the pair was trading at $1286.55, losing nearly $4 on a daily basis.
Reports of the EU countries agreeing to start trade negotiations with the United States helped the market sentiment turn positive in the European session and allowed stock markets to gain traction while making it difficult for safe-havens such as gold find demand. At the moment, the Euro Stoxx 50 and Germany's DAX are both up 0.22% on the day.
On the other hand, the US Dollar Index, which failed to hold above 97 on Friday, started the new week in a relatively calm manner and was last seen virtually unchanged on the daily chart at 96.85. Later in the session, the NY Fed's Empire State Manufacturing Index will be looked upon for fresh impetus. Moreover, participants will be paying close attention to Wall Street's performance to reaffirm the risk-on atmosphere.
Technical levels
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.
