Gold steadies near $1255 as US Dollar goes into consolidation below 94
- DXY fails to hold above 94, looks to close the day with modest gains.
- Wall Street loses the early bullish momentum, remains in the positive territory.
The tory ounce of the precious metal dropped to a fresh weekly low at $1247 earlier today but retraced the majority of its daily losses in the NA session. As of writing, the XAU/USD pair was trading at $1256, down 0.15% on the day.
After finishing the previous day slightly below the 94 mark, the US Dollar Index extended its technical rise to a daily high of 94.22 amid a sharp fall witnessed in the GBP/USD and the EUR/USD pairs during the European morning. However, amid a lack of fresh fundamental drivers, the DXY struggled to preserve its bullish momentum and retreated back below the 94 mark. At the moment, the index was up 0.1% on the day at 93.90.
The data from the United States on Tuesday showed that the NFIB Business Optimism Index eased to 107.2 in June from 107.8 in May but came in above the market expectation of 105.6, while the JOLTS job openings beat the experts' estimate with 6.638 million in May.
In the meantime, Wall Street started the day on a positive note on the back of upbeat earnings figures but failed to push higher as investors refrain from taking large positions ahead of more earnings data scheduled to be released in the remainder of the week and next week. At the moment, the Dow Jones Industrial Average and the S&P 500 are up 0.35% and 0.08% respectively.
Technical levels to consider
On the upside, the initial resistance for the pair aligns at $1260 (Jul. 4 high/20-DMA) ahead of $1265 (Jul. 9 high) and $1272 (Jun. 24 high). Supports could be seen at $1247/45 (daily low/Jun. 28 low), $1239 (Jul. 2 low) and $1228 (Jul. 16, 2017, low). Meanwhile, the CCI indicator on the daily chart has returned back to the 0 mark, pointing to a neutral price action in the short-term.