Gold remains on track to close with small losses below $1340


  • US Dollar Index steadies above mid-97s in the NA session.
  • Wall Street clings to modest daily gains following the positive start.

The XAU/USD pair, which closed higher on the weekly chart for the fourth straight time last week, is fluctuating in a relatively tight range on Monday amid a lack of significant fundamental drivers that had a lasting impact on the greenback's market valuation or the risk perception. As of writing, the XAU/USD pair was down 0.2% on a daily basis at $1338.70. 

Major equity indexes in the U.S. started the day in the positive territory on Monday and remain on track to post modest gains to hint at a slightly positive market sentiment that makes it difficult for the traditional safe havens such as the precious metal find demand. Furthermore, investors seem to be refraining from making large bets ahead of the critical FOMC meeting on Wednesday, at which the bank is expected to address the financial markets' expectations of rate cuts. 

Previewing this event, "With trade tensions likely to escalate, this Wednesday’s Fed meeting looks set to confirm market expectations - precautionary interest rate cuts are coming," said ING analysts in a recently published article.

On the other hand, despite a quick drop following the disappointing Empire State Manufacturing Survey, the US Dollar Index climbed above the 97.50 mark and was last up 0.1% on the day at 97.55 to keep the bearish pressure on the pair intact. Similar to stock markets, however, the FX market is also waiting for the FOMC to announce its monetary policy decisions and we are unlikely to see any surprises in the DXY's movements until then.

Technical levels to watch for

XAU/USD

Overview
Today last price 1339.2
Today Daily Change -2.73
Today Daily Change % -0.20
Today daily open 1341.93
 
Trends
Daily SMA20 1307.94
Daily SMA50 1294.09
Daily SMA100 1301.28
Daily SMA200 1268.78
Levels
Previous Daily High 1358.2
Previous Daily Low 1338.2
Previous Weekly High 1358.2
Previous Weekly Low 1319.99
Previous Monthly High 1306.9
Previous Monthly Low 1266.35
Daily Fibonacci 38.2% 1345.84
Daily Fibonacci 61.8% 1350.56
Daily Pivot Point S1 1334.02
Daily Pivot Point S2 1326.11
Daily Pivot Point S3 1314.02
Daily Pivot Point R1 1354.02
Daily Pivot Point R2 1366.11
Daily Pivot Point R3 1374.02

 

 

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD drops below 1.11 amid upbeat US data, trade concerns

EUR/USD is trading below 1.11 after robust US housing figures and solid consumer sentiment figures were published. Earlier, the common currency suffered from the concerns of new US tariffs on the EU.

EUR/USD News

GBP/USD down 100 pips after UK retail sales badly disappoint, amid USD strength

GBP/USD has plunged below 1.3050 after UK retail sales badly disappointed with a fall of 0.6% in December, on top of downward revisions. Odds of a BOE cut have risen.

GBP/USD News

Crypto market hyperspace mode On

The secondary actors of the crypto-sphere awaken and rally hard. Leading coins battle with greater resistance at the gates of a full bullish market. The only risk is an over-shoot, but that sentiment remains neutral.

Read more

Gold looks to close week flat below $1560

The XAU/USD pair climbed to a fresh daily high of $1560 in the early trading hours of the American session but struggled to preserve its momentum.

Gold News

USD/JPY: Losing bullish momentum but retaining gains

Chinese encouraging data kept markets in risk-on mode at the beginning of the day. The US January Michigan Consumer Sentiment Index is seen at 99.3, matching December figure. USD/JPY holding at the upper end of its weekly range could correct lower.

USD/JPY News

Forex MAJORS

Cryptocurrencies

Signatures