- 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
Share
