Gold extends slide, hits one-week lows near $1715
|- A stronger US dollar amid a reversal in Wall Street weighs on gold.
- XAU/USD having the worst day in a month, eyes on the 20-day SMA.
Gold prices turned sharply lower on Monday during the American session. XAU/USD dropped below $1730/oz and tumbled to $1716, reaching the lowest level in a week.
The move lower took place as equity prices in Wall Street turned negative and following a rally of the US dollar. The greenback was falling across the board but rebounded. The DXY erased daily losses in an hour and rose to 99.50. Tensions between the US and China are keeping stocks under pressure as the first headlines from the National People’s Congress kicks off.
Technical levels
The decline of XAU/USD was capped so far above the 20-day simple moving average that stands at $1714. A consolidation below would likely increase the bearish pressure. The next support stands at $1696. On the upside, now $1730 is the immediate resistance and then $1741.
The main trend in gold remains bullish, but the momentum is fading as it heads for the worst daily slide in a month.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.