- Broad-based USD strength weighs on the pair in the NA session.
- DXY rises above 97 to turn positive on the week.
- Wall Street records small gains ahead of Trump-Xi meeting.
The XAU/USD pair, which moved sideways near the $1224 handle for the majority of the day, came under pressure in the last hour and touched its lowest level in two days at $1216.75. As of writing, the pair was trading at $1218, losing 0.5% on a daily basis.
After struggling to make a decisive move higher above 97 earlier today, the US Dollar Index gained traction after the PMI data published by the Chicago ISM came in above market expectations. “The MNI Chicago Business Barometer surged to an 11-month high of 66.4 in November, up 8.0 points from October’s 58.4,” the ISM said. Boosted by this reading, the DXY rose to 97.20. As of writing, the index was up 0.35% on the day at 97.15.
Meanwhile, following a flat start to the day, major equity indexes in the U.S. inched higher in the last hour with the &SP 500 and the Nasdaq Composite adding 0.3% and 0.4%, respectively and didn’t allow the precious metal to recover its losses.
There won’t be any other macroeconomic data releases in the remainder of the day and investors will be waiting for the headlines from the G20 summit.
Technical levels to consider
The initial support for the pair aligns at $1211 (Nov. 28 low) ahead of $1206 (Nov. 9 low) and $1200 (psychological level). On the upside, resistances are located at $1220 (50-DMA), $1228 (Nov. 29 high) and $1236 (Nov. 7 high).
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