The pair XAU/USD fell to a minimum of sign in 1263.70 dollar after the data, Consumer Sentiment in the united States, but quickly recovered as the latest headlines suggested that stress geopolitics continued to rise with North Korea.
At this time, the pair XAU/USD was trading at 1267.75$, a 0.26% rise on the day. On Friday, the us secretary of State, Rex Tillerson, called for the UN to apply sanctions and suspend diplomatic relations with North Korea and added that all options to respond to future provocations from North Korea are still on the table. Also speaking at the meeting of the UN, the prime minister of the United Kingdom, Theresa May, stated that they will continue to work with international partners to maintain pressure on North Korea.
Driven by the growing demand of safe haven, the precious metal regained strength against the dollar and approached 1270, where a strong resistance was formed after continuous failed attempts. On the other hand, in spite of a buying interest renewed at around the dollar, the dollar index of the US is having a hard time moving above the level 99 and is further supported by the recent rise in XAU/USD. By the time, the DXY operates at 98.90, down 0.12% on the day.
With a break clean above 1270 usd, the pair XAU/USD could point to 1288 (April 21) and 1295 (April 17).
To the floor, 1260 (26 April) could be seen as the first support before 1249 (DMA 50) and 1239 (DMA 200).