- Gold is trading in the green in Asia despite signs of risk reset.
- The yellow metal is likely drawing strength from the weakness in the US dollar.
- $1,300 could come into play again if the US CPI misses estimates.
Gold is reporting moderate gains at press time, despite the risk reset in equities.
The yellow metal is currently trading at $1,294 – up 0.31 percent from the low of $1,290 seen yesterday.
Asian stocks are also trading in the green with the likes of Nikkei and Shanghai Composite up at least 1 percent each. The US stocks rallied yesterday as the gains in the technology shares overshadowed losses in Boeing. The European shares were solidly bid as well.
Even so, the safe haven metal is flashing green, possibly due to the weak tone in the greenback. The dollar index (DXY), which tracks the value of the US dollar against majors, fell 0.42 percent to levels below 97.00 yesterday – the biggest single-day drop since Jan. 25.
The DXY could take a beating in the NY session if the US consumer price index (CPI), due at 12:30, prints below estimates, validating Fed’s patience on further rate hikes. In that case, gold will likely revisit $1,300.
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