Gold intermarket: highly correlated to US stocks, 100 DMA supports

• Gold fully recovers from Asina and European losses
• Highly correlated to the performance on Wall Street
• The US dollar is giving back some gains but yields remain elevated

Gold has fully recovered the losses from the Asian and European sessions, bouncing from $1,270.80 lows to $1,279.98 highs and oscillating around 1278 spot at the time of writing. 

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Gold is negatively correlated to Wall Street, as noted on 7th of September, with the bull trend steepening in the Dow vs the bear trend in gold. More recently, this is also noted on the 18th Oct in a very evident correlation. Today, the Dow fell by triple digits as stocks retreat on a string of disappointing earnings and Gold has rallied to the aforementioned highs in true fashion on a few stock market results on Wednesday that have disappointed investors.

However, the DXY is down -0.14% at the time of writing and caps the bid in the precious metal while the US10- year yield is also off its highs of  2.4736% at 2.4335% within the day's range of 2.4117% - 2.4736%.

Meanwhile, in terms of data today, US Durable Goods Orders rose 2.2% in September above the 1% expected. Analysts from Wells Fargo point out that core capital goods orders and shipments are both rising at the fastest three-month average annualized pace in years.

US Durable Goods Orders: Continued firming in factory sector data - Wells Fargo

Gold levels

Gold's 4-hr RSI (14) moves out of oversold territory to 44.90 and tested the 4hr-21 SMA at 1277.45. 1275.38 (100-D SMA) is supporting although fragile on the back of the broader tone in the resurgence in the greenback and next major support below 1273.60 comes at the 5th October lows of 1260.60. To the upside, 1280/82 and 1287, (21- D SMA meeting 10-D SMA), 1300/04 /08 areas remain key with daily closes above there for a look in at 1313.