Gold trades flat on the day amid a lack of catalysts
For the second straight day, the XAU/USD pair is having a difficult time finding direction as markets remain generally calm amid a lack of fresh fundamental catalysts. At the moment, the XAU/USD is trading virtually unchanged on the day at $1244.
The risk appetite, which impacts the demand for the precious metal, is mixed in the NA session. Although major equity indexes in the U.S. struggle to recover their opening losses with the Dow Jones Industrial Average and the S&P 500 indexes both losing 0.15%, the U.S. Treasury bond yields are rising, suggesting that the market sentiment is unclear.
On the other hand, the US Dollar Index, which received some needed boost from Fed speakers in the previous day, moves in a very tight channel below mid-97s. In fact, the index is flat on the day at 97.40 at the moment. Nevertheless, the pair struggles to pull away from the one-month low that it set at $1241 yesterday and may be poised for further losses if the greenback continues to remain resilient against its rivals.
Technical outlook
Both the CCI and the RSI on the daily graph are showing short-term neutral conditions for the pair. Initial support aligns at $1235 (May 3 low) before $1229 (200-DMA) and $1225 (May 4 low). On the upside, resistances could be seen at $1248 (Jun. 21 high), $1256 (50-DMA) and $1267 (20-DMA).
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
