Gold rises above $1200 as Wall Street turns red
- US Dollar Index drops below 97 in the NA session.
- Shifting market sentiment helps the precious metal find demand.
- US Stocks turn negative after starting the day higher.
After slumping to a daily low at $1197, the XAU/USD pair reversed its course and recovered above the critical $1200 level to turn positive on the day. As of writing, the pair was up $1 at $1203.20.
A broad-based selling pressure surrounding the greenback and a weakening risk appetite in the NA session seems to be providing a boost to the pair. Today's data from the U.S. showed that the inflation, measured by the core CPI, on a yearly basis fell to 2.1% in October and fell short of the market expectation of 2.2% to weigh on the buck. Furthermore, the British pound's impressive performance ahead of British Prime Minister Theresa May's press conference following the Cabinet meeting puts some extra weight on the dollar's shoulders. At the moment, the US Dollar Index is virtually unchanged on the day at 96.96.
On the other hand, Wall Street changed its direction after starting the day higher and allowed safe-havens to gather strength. At the moment, the Dow Jones Industrial Average and the S&P 500 indexes are down 0.6% and 0.5%, respectively.
Technical levels to consider
With a daily close above $1200 (psychological level), the pair could extend its recovery to $1211 (50-DMA), $1223 (Nov. 9 high) and $1227 (Nov. 8 high). On the downside, supports could be seen at $1197 (daily low), $1185 (Oct. 10 low) and $1180 (Sep. 28 low).