Gold moves sideways above $1250 amid lack of catalysts
On Monday, the precious metal has been moving in a relatively narrow range above $1250 in the last hours, unable to set a near-term direction. At the moment, the metal is gaining 20 cents on the day at $1254.50.
The XAU/USD slipped to a fresh daily low at $1247 during the European session but quickly recovered back into the positive territory as the US Dollar Index edged lower to 100.90 at the beginning of the NA session. Since then, the index hasn't been able to move back above the 101 level and allowed the precious metal to recover its daily losses.
On the other hand, the market sentiment is not giving any clear signals either. The major equity indices in the United States as they have been seesawing between minor gains and losses. Federal Reserve Chair Yellen's speech at the top of the hour could be the next catalyst for the pair as she is expected to share her view on the idea of shrinking the balance sheet as a tightening move. After her speech at the University of Michigan, she is also going to be answering questions from the audience and via Twitter. Any remarks regarding the Fed's rate hike path could bring volatility back to the markets.
- Janet Yellen speech's at the University of Michigan - Live Stream
Technical outlook
The precious metal faces the first hurdle at $1270 (Friday's high) before $1276 (Oct. 25 high) and $1284 (Oct. 28 high). On the downside, the 200-DMA at $1243 remains as a strong support ahead of $1237 (50-DMA) and $1227 (Mar. 21 low).
