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Gold stays directionless in daily range below $1300

  • Retail sales in the U.S. grew by more than expected in January.  
  • US Dollar Index remains stuck in the daily range.
  • 10-year US  T-bond yield retreats from highs.

The XA/USD pair, which rose above the critical $1300 mark on Friday before finishing the week below that level,  slumped to a fresh session low of $1293.50 in the last hour but didn’t have a hard time recovering its losses. As of writing, the pair was trading near $1297, losing only around $1  on the day.

The only data from the U.S. on Monday showed that retail sales rose by 0.2% on a monthly basis in January following December’s 1.6% fall but failed to support the greenback. Following Friday’s sell-off that was intensified after the NFP reading came much below the market expectation, the greenback seems to be staying in a consolidation phase. At the moment, the DXY is posting small losses on the day at 97.28.

The 10-year US T-bond yield, which rose more than 1% earlier in the session, gave back more than half of its daily gains and was last up 0.4%, not allowing the US Dollar Index to gain traction.

There won’t be any other macroeconomic data releases in the remainder of the day and the pair is likely to continue to fluctuate below the $1300 handle. A daily close above that level could bring in more buyers and  trigger a fresh bull wave.  

Technical levels to consider

The initial support for the pair could be seen at $1293.50 (daily low) ahead of $1285 (Mar. 8 low) and $1280 (Mar. 7 low). On the upside, resistances are located at $1300 (psychological level), $1306 (50-DMA) and $1311 (20-DMA).

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