Gold is flashing green amid gains in the dollar index

• Gold is on the defensive, possibly due to gains in the greenback.
• The metal may suffer deeper losses below key rising trendline support.
• China trade data could influence the dollar index and gold.

Gold is flashing red in Asia, possibly due to gains in the US dollar - gold's biggest nemesis.

At press time, the yellow metal is trading at $1,225 - down 0.25 percent on the day - and the dollar index (DXY) is reporting a 0.20 percent gain at 96.19.

Prices clocked a high of $1,236 yesterday as the greenback was offered in response to Democratic House. The equities, however, remained bid, helping the US dollar regain some poise. The combination of a recovery in the USD and risk-on action in the stocks likely pushed the metal back below $1,230.

Looking ahead, the trendline sloping upwards from the Oct. 9 low and Oct. 31 low could be breached if the China trade data, due in a few minutes, prints below-forecasts, pushing the DXY higher.

Gold Technical Levels