- US Dollar Index stages modest recovery in the last hours.
- Market sentiment stays neutral amid Thanksgiving holiday in the U.S.
After closing the previous day near $1225, the XAU/USD pair inched higher toward the $1230 region during the first half of the day but struggled to preserve its momentum. With the trading volume thinning out into the NA session, the pair is moving sideways near $1227, adding 0.12% on a daily basis.
Earlier today, the European Commission announced that it approved the draft of the post-Brexit ties declaration to provide a boost to the GBP, which forced the greenback to lose interest in weaken against its rivals. After slumping to its lowest level of the day at 96.32, however, the US Dollar Index rebounded and steadied near 96.50, where it was still down around 0.2% on the day.
Later in the session, British Prime Minister Theresa May is scheduled to speak in the Parliament about the draft Brexit agreement. A market reaction that could cause sharp fluctuations in the greenback’s market valuation could also impact the XAU/USD pair. However, the pair is unlikely to break out of its daily range.
Technical levels to consider
The initial support for the pair aligns at $1215 (50-DMA) ahead of $1206 (Nov. 9 low) and $1200 (psychological level). On the upside, resistances could be seen at $1230 (daily high/Nov. 21 high), $1236 /Nov. 7 high) and $1243 (Oct. 26 high).
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