- XAU/USD rises to its highest level since late July at $1233.
- Wall Street starts the day modestly lower.
- US Dollar Index retreats to 95 area post data.
The XAU/USD pair took advantage of the broad-based USD weakness and a negative market sentiment on Monday to advance to its highest level since July 26 at $1233. However, the pair struggled to push higher in the last how and was last seen trading at $1230, where it was up $12, or 1%, on a daily basis.
Today’s data from the United States showed that retail sales in August rose 0.1% in September to fall short of the market expectation of 0.5%. On the other hand, the NY Fed’s Empire State Manufacturing Index rose to 21.1 in October to beat the analysts’ estimate of 20. Following the mixed data, the US Dollar Index, which tracks the greenback against a basket of six major currencies, failed to shake off the bearish pressure and stayed in the negative territory. At the moment, the index is down 0.16% on the day at 95.08.
Meanwhile, major equity indexes in the U.S. started the day slightly lower and doesn’t allow the safe-haven precious metal to lose its resilience against the buck. Although the Dow Jones Industrial Average pared early losses and turned positive, the S&P 500 is still down while the Nasdaq Composite is losing around 0.65%.
There won’t be any other macroeconomic data releases in the remainder of the day and the risk perception is likely to continue to drive the pair’s price action.
Technical levels to consider
The initial resistance for the pair aligns at $1235 (Jul. 26 high) ahead of $1244 (Jul. 17 high) and $1255 (Jul. 11 high). On the downside, supports are located at $1219 (daily low), $1215 (Oct. 12 low) and $1200 (psychological level/50-DMA).
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