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

 

  

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