- Gold finds resistance near $1216 on Tuesday.
- Major equity indexes in the U.S. gather momentum.
- The US Dollar Index steadies near 95.15.
The XAU/USD pair took advantage of the greenback weakness during the first half of the day and rose to $1216 before losing its traction in the NA session. With the modest recovery seen in the US Dollar Index and an improved market sentiment, the pair erased some of its daily gains and was last seen trading at $1212, where it was still up 0.4% on the day.
Today's data from the United States showed that the Economic Optimism Index released by the IBD/TIPP improved to its highest level since Donald Trump became the President at 58 to beat the analysts' estimate of 57.2. Furthermore, JOLTS Job Openings rose to 6.662 million in June from 6.659 million in May. Boosted by the upbeat data, the US Dollar Index started to pull away from the daily low that it set at 95 and was last seen at 95.16, where it was still down 0.2% on the day.
On the other hand, major equity indexes in the U.S. started the day on a positive note and preserved their bullish momentum during the first half of the session with the Dow Jones Industrial Average and the S&P 500 adding 0.65% and 0.4% reflectively to reflect an improved market sentiment which makes it difficult for traditional safe-havens to find demand. Reflecting the higher risk appetite, the 10-year T-bond yield is up 0.9%.
Later in the session, consumer credit change released by the Federal Reserve will be looked upon for fresh impetus.
Technical outlook
Despite today's modest recovery, both the CCI and the RSI indicators on the daily chart continue to show that sellers are still in control of the price action. On the downside, supports are located at $1207 (daily low/Aug. 6 low) ahead of $1200 (psychological level) and $1194 (Mar. 10, 2017, low). On the upside, resistances could be seen at $1222 (20-DMA), $1234 (Jul. 25/26 high) and $1249 (50-DMA).
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