The troy ounce of the precious metal rose above the critical $1400 mark on Monday but failed to hold there amid broad USD strength as its fluctuating this morning in a tight range around the $1393 level. The greenback rally that was fueled by the strong labour market data from the US last Friday remains intact with the US Dollar Index advancing to its highest level since mid-June at 97.60 and keeping the bearish pressure on the pair intact. Moreover, the 10-year US Treasury bond yield is rising for the third day, allowing the dollar to preserve its strength. Meanwhile, major equity indexes in the U.S. started the day in the negative territory as receding hopes of the Fed making a dovish shift and multiple rate cuts this year seems to be weighing on the sentiment and keeping investors away from stocks. The sour market sentiment is helping the precious metal limit its losses for the time being. Markets are now waiting for the Atlanta Fed President Bostic and St. Louis Fed President Bullard's speeches that will determine the next direction for the yellow metal.
Gold prices tried to break above the $1400 level again but also failed to settle above it as bulls are not finding the right traction to ride the momentum back up. However, prices are well supported by near support levels and are not printing news lows which can be a huge indicator that an upward move is coming next. The price is currently hovering around the $1393 level in a tight range and we will be focusing on the $1410.78 resistance level in case it does not dip below the $1386 level.
Support: 1392.80 / 1382.76
Resistance: 1401.62 / 1410.78