Gold extends consolidation, looks to close week above $1400
- US stocks post small gains in the early trade on Friday.
- US Dollar Index ignores PPI data, stays calm around 97.
- Gold remains on track to close the week higher.
The XAU/USD pair is trading in a relatively tight range on Friday toward the end of a roller coaster week that saw prices fluctuate between $1386 and $1427. As of writing, the pair is up 0.2% on the day near $1407 and remains on track to finish the week modestly higher.
Today's data from the U.S. showed that the core Producer Price Index (PPI) in June remained steady at 2.3% on a yearly basis and came in a tad above the market expectation of 2.2%. Nevertheless, the US Dollar Index, which dropped to a weekly low of 96.80 before recovering modestly on the back of upbeat inflation data, ignored the data and continues to move up and down near the 97 handle.
Despite the fact that the greenback is having a tough time finding demand today, the slightly improved market sentiment doesn't allow the pair to push lower. Major equity indexes on Friday started the day in the positive territory and cling to modest gains in the first half of the session while the 10-year Treasury Bond yield stays green to confirm the risk-on mood.
There won't be any other macroeconomic data releases in the remainder of the day and the pair is likely to remain above the $1400 mark.
Technical levels to watch for