Gold comatose above $1300, looking for next catalyst
|The XAU/USD pair inched higher to its highest level since September 16 at $1305 but struggled to stretch its gains amid a lack of fresh catalysts that could impact the price action. As of writing, the pair was virtually unchanged on the day at $1303.
Despite the robust Empire State Manufacturing Index data, the greenback couldn't gather a bullish momentum on Monday as investors remained on the sidelines in the quiet day. The US Dollar Index, which closed the previous week a little below the 93 mark, has been moving in a tight range in the last few hours. At the moment, the index is at 93, up 0.08% on the day.
The softer-than-expected core-CPI inflation data from the U.S. on Friday hurt the expectations of a December Fed rate hike, pushing the CME Group FedWatch Tool's probability down to 81.7%. However, the negative impact of the data seems to have faded away and the CME Group FedWatch Tool's probability is back above 90% on Monday.
In the meantime, major equity indexes in the U.S., which reflect the market sentiment, is trading mixed in the session with the Dow Jones gaining 0.2% and the S&P 500 losing 0.02%, failing to help the pair find direction.
Technical outlook
The CCI indicator on the daily graph edged lower towards the 100 mark, showing that the bullish momentum is losing strength. However, as long as the pair continues to float above the $1300 mark, it could make fresh attempts on the upside. The first technical hurdle for the pair aligns at $1313 (Sep. 26 high) ahead of $1320 (Sep. 18 high) and $1333 (Sep. 12 high). On the downside, supports are located at $1300 (psychological level), $1286 (20-DMA) and $1275 (Oct. 9 low).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.