Gold rises after three-day losing streak as dollar weakens

Gold is flashing green at press time with the greenback, yellow metal's biggest nemesis, feeling the pull of gravity amid signs of risk-on in the global equities. 

The yellow metal is currently trading $1,711, representing a 0.16% gain on the day, having risen from $1,703 to $1,713 in the 60 minutes to 02:00 GMT. Prices fell by 0.12%, 0.96%, and 0.15% on Friday, Monday, and Tuesday, respectively - the metal's first three-day losing streak since mid-March. 

Broad-based dollar weakness

The greenback is being sold across the board during Wednesday's Asian trading hours, as evidenced from the 0.30% decline in the dollar index, which measures the value of the greenback against major currencies. 

Notably, the Japanese yen is trading at a six-week high of 106.54 against the dollar, and the growth-linked currencies, AUD and NZD, are reporting at least 0.40% daily gains. 

The dollar weakness could be associated with the improved risk appetite in the financial markets, as suggested by the 1% gain in the futures tied to the S&P 500 index. An absence of fresh bad news is likely boding well for the risk assets and hurting the safe-haven dollar. 

The risk assets, however, are operating on a shaky ground, as the breadth of the recent rally in the S&P 500 is quite narrow, according to Goldman Sachs analysts. If the stocks turn risk-averse, the dollar will likely find haven bids. However, gold, too, is expected to gain a bigger ground over the long run on account of the unprecedented monetary and fiscal lifelines launched by authorities across the globe. 

Technical levels