Gold pulls away from 6-week lows, stays in red around $1285
- European equity indices trade mixed on Tuesday.
- 10-year US T-bond yield retraces Monday's fall.
- US Dollar Index stays in green above 96.70.
The troy ounce of the precious metal continued to lose value in USD terms on Tuesday and fell to its lowest level since January 25 near $1283. As of writing, XAU/USD was trading at $1285.85, losing 80 cents n the day.
The broad-based USD strength continues to weigh on the pair while the market sentiment doesn't hint at a risk-off mood, which could help gold recover its losses. Ahead of the speeches by FOMC members Rosengren, Kashkari and Barkin, the US Dollar Index is posting small gains at 96.70. A 0.6% rebound seen in the 10-year US T-bond yield seems to be supporting the greenback ahead of the day's macro events. The IHS Markit and the ISM will be publishing their non-manufacturing PMI reports in the NA session as well.
Meanwhile, the Euro Stoxx 50 and Germany's DAX are suffering modest losses on the day while the UK's FTSE is adding 0.3%. Nevertheless, the S&P 500 Futures is pointing to a flat start in Wall Street today, confirming the neutral sentiment.
Technical levels to consider
With a daily close above $1300 (psychological level), the pair could stage a decisive recovery and aim at $1306 (50-DMA) and $1315 (20-DMA). On the other hand, supports could be seen at $1283 (daily low/Mar. 4 low), $1276 (Jan. 24 low) and $1266 (Dec. 27, 2018, low). The CCI indicator on the daily chart is climbing toward the -100 mark, suggesting that the pair is in a technical correction phase.