- Gold loses momentum ahead of 200-DMA.
- Wall Street starts the day on a positive note.
- DXY stays in daily range near 93.
The XAU/USD pair is having a difficult time extending its weekly gains on Thursday and stays in the negative territory in the early NA session amid an improved market sentiment. As of writing, the pair was at $1264.50, down 0.1% on the day.
Markets ignore mixed macroeconomic data from the U.S.
Today's data from the United States showed that the third estimate of the third quarter GDP growth declined to 3.2% from 3.3%, missing the market expectation of 3.3%. However, both the Chicago Fed National Activity Index and Philly Fed Manufacturing Index data beat the experts' estimates, not allowing the initial negative impact of the GDP data on the greenback to persist. As of writing, the US Dollar Index is virtually unchanged on the day at 92.95.
On the other hand, major equity indexes, which recorded two consecutive daily losses, started the day on a high note and began to retrace their recent losses, keeping the investors' focus on riskier assets instead of traditional safe-havens such as gold. At the moment, the Dow Jones Industrial Average and the S&P 500 were up 0.4% and 0.3% respectively.
With no macroeconomic data releases left in the remainder of the session and a relatively subdued trading action ahead of the Christmas break, the pair is likely to fluctuate in its tight daily range.
Technical outlook
In order to extend its uptrend, the pair needs to make a daily close above $1271 (200-DMA). Above that level, the pair could aim for $1277 (Dec. 4 high) and $1290 (Dec. 1 high). On the downside, supports could be seen at $1260 (20-DMA), $1252 (Dec. 28 low) and $1240 (Dec. 13 low). The CCI indicator on the daily chart recently eased below the 100 mark, suggesting that the bullish momentum is losing strength.
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
EUR/USD hold comfortably above 1.0750 as USD recovery loses steam
EUR/USD clings to small daily gains above 1.0750 in the early American session on Monday. In the absence of high-tier data releases, the US Dollar finds it difficult to gather recovery momentum and helps the pair hold its ground.
GBP/USD range bound around 200-DMA, awaiting BoE’s decision
The Pound Sterling registers anemic losses against the US Dollar as traders brace for the Bank of England’s (BoE) monetary policy decision on Thursday. The pair remained within the 1.2529-1.2594 boundaries during the last few days, capped by key support and resistance levels. The GBP/USD trades at 1.2556, down 0.04%.
Gold eases toward $2,310 amid a better market mood
After falling to $2,310 in the early European session, Gold recovered to the $2,310 area in the second half of the day. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.5% and helps XAU/USD find support.
Ripple lawsuit develops with SEC reply under seal, XRP holders await public redacted versions
Ripple lawsuit’s latest development is SEC filing, under seal. The regulator has filed its reply brief and supporting exhibits and the documents will be made public on Wednesday, May 8.
The impact of economic indicators and global dynamics on the US Dollar
Recent labor market data suggest a cooling economy. The disappointing job creation and rising unemployment hint at a slackening demand for labor, which, coupled with subdued wage growth, could signal a slower economic trajectory.