Gold recovers from daily lows, back around $1290

After refreshing its daily low at $1285.80 during the early NA session, the precious metal started to regain some lost strength and moved into the positive area. At the moment, the XAU/USD is up 0.2% on the day at $1290.20.

Although the precious metal seems to have picked up some bullish momentum amid a weakening greenback in the last couple of hours, the fact that the U.S. stocks rise for the first time since last Wednesday is giving the yellow metal a hard time by allowing a high-risk appetite back into the markets.

As of writing, the Dow Jones Industrial Average was up 93.75 points, and the S&P500 gained 9 points or 0.4%. On the other hand, the US Dollar Index remains near the critical 100 level, recording a daily loss of 0.45%. The macro data from the U.S. might have played a role in the recent drop.

• US: Builder confidence holds firm in April - NAHB
• NY Fed: Headline general business conditions index fell eleven points to 5.2

Technical outlook

The metal faces the first resistance at $1295 (daily high) before it tests $1300 (psychological level) and $1306.50 (Nov. 4 low). To the downside, supports could be seen at $1285.60 (daily low), $1272 (Apr. 12 low) and $1261 (Apr. 4 high).