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  • Gold is on the defensive, possibly due to gains in the greenback.
  • The metal may suffer deeper losses below key rising trendline support.
  • China trade data could influence the dollar index and gold.

Gold is flashing red in Asia, possibly due to gains in the US dollar – gold’s biggest nemesis.

At press time, the yellow metal is trading at $1,225 – down 0.25 percent on the day – and the dollar index (DXY) is reporting a 0.20 percent gain at 96.19.

Prices clocked a high of $1,236 yesterday as the greenback was offered in response to Democratic House. The equities, however, remained bid, helping the US dollar regain some poise. The combination of a recovery in the USD and risk-on action in the stocks likely pushed the metal back below $1,230.

Looking ahead, the trendline sloping upwards from the Oct. 9 low and Oct. 31 low could be breached if the China trade data, due in a few minutes, prints below-forecasts, pushing the DXY higher.

Gold Technical Levels

XAU/USD

Overview:
       Last Price:  1224.44
       Daily change:  -1.6e+2  pips
       Daily change:  -0.133%
       Daily Open:  1226.07
Trends:
       Daily SMA20:  1227.93
       Daily SMA50:  1212.41
       Daily SMA100:  1207.17
       Daily SMA200:  1244.95
Levels:
       Daily High:  1236.6
       Daily Low:  1222.7
       Weekly High:  1237.6
       Weekly Low:  1211.8
       Monthly High:  1243.43
       Monthly Low:  1182.54
       Daily Fibonacci 38.2%:  1228.01
       Daily Fibonacci 61.8%:  1231.29
       Daily Pivot Point S1:  1220.31
       Daily Pivot Point S2:  1214.56
       Daily Pivot Point S3:  1206.41
       Daily Pivot Point R1:  1234.21
       Daily Pivot Point R2:  1242.36
       Daily Pivot Point R3:  1248.11