Gold reports losses as equities trade in the green


  • Risk reset in equities is likely weighing over gold. 
  • The dollar index, gold's biggest nemesis, hit multi-week highs on Monday. 

Gold is reporting losses in Asia amid gains in equities and could snap the four-day winning streak on sustained strength in the dollar index. 

The yellow metal is currently trading at session lows near $1,567, representing a 0.25% loss on the day. Prices have dived below the trendline rising from Feb. 5 and Feb. 6 lows, as seen on the hourly chart, signaling an end of the bounce from recent lows below $1,550.

While gold is losing ground, the equities are showing signs of risk reset. At press time, the futures on the S&P 500 are reporting a 0.3% gain and major Asian indices like Hang Seng and Kospi are adding over 1%. The Shangai Composite index is also gaining 0.55%, however, Japan's Nikkei is reporting moderate losses. 

US dollar on the rise

The dollar index, which tracks the value of the greenback against majors, rose to 98.88 during Monday's US trading hours. That was the highest level since Oct. 10. Notably, the US dollar has risen from 97.37 in a near-90 degree rally over the last six trading days. 

Gold, therefore, may have a tough time extending its four-day winning streak. The metal closed on a positive note for the fourth straight day on Monday. 

Technical levels

XAU/USD

Overview
Today last price 1568.67
Today Daily Change -5.15
Today Daily Change % -0.33
Today daily open 1573.82
 
Trends
Daily SMA20 1565.94
Daily SMA50 1528.55
Daily SMA100 1506.63
Daily SMA200 1460.59
 
Levels
Previous Daily High 1577.05
Previous Daily Low 1568.06
Previous Weekly High 1594.01
Previous Weekly Low 1547.56
Previous Monthly High 1611.53
Previous Monthly Low 1517.1
Daily Fibonacci 38.2% 1573.62
Daily Fibonacci 61.8% 1571.49
Daily Pivot Point S1 1568.9
Daily Pivot Point S2 1563.99
Daily Pivot Point S3 1559.91
Daily Pivot Point R1 1577.89
Daily Pivot Point R2 1581.97
Daily Pivot Point R3 1586.88

 

  

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


Latest Forex News

Editors’ Picks

AUD/USD bulls stepping in on the US dollar's stalling, prospects are technically bullish

AUD/USD bears bailing out as price consolidates the down move. US dollar giving back some ground, could give rise to healthy upside correction in AUD crosses. Despite the market chatter about Reserve Bank of Australia cuts next month, AUD/USD is performing the bid in improved risk appetite.

AUD/USD News

EUR/USD bounces from fresh lows, risk skewed to the downside

EUR/USD trades in the 1.1670 price zone, as demand for the greenback eased during US trading hours, following dismal US employment-related data.

EUR/USD News

XAU/USD catches a bid at $1850 but the retracement may not be over

Gold has been moving in a downward trajectory since the greenback strength kicked in on 1st September. Since then, the greenback has broken out of consolidation zones in EUR/USD and most of the other majors. 

Gold News

WTI holding the $40's, but a fade on rallies is the technical playbook

WTI bulls taking the baton from the bears on Thursday against an otherwise technically bearish backdrop. Demand-side fundamentals demand greatly on a vaccine. Commodities are performing well as ...

Oil News

Bitcoin and Ethereum rebound strongly and are poised for further gains

Bitcoin confirmed a 4-hour bear flag that got almost no continuation and went straight into a massive move towards $10,700. Similarly, Ethereum also bounced back up, although its bounce is comparatively weaker, it is trading at $347. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures