Gold Price Analysis: XAU/USD extends slide to fresh monthly lows, ready to test $1,860
|- Greenback gains momentum across the board as Wall Street turned to the downside.
- XAU/USD about to test August lows near $1,860.
The metal resumed its decline on Wednesday. Gold broke under $1,870/oz and tumbled to $1,864, the lowest level in six weeks, stalling just before the August low at $1,862.
XAU/USD remains under pressure, affected by a stronger US dollar across the board and by a deterioration in market sentiment. The greenback gained momentum after the beginning of the American session despite a mixed US preliminary Markit PMI report. The DXY climbed to 94.30, the highest level since late July.
While XAU/USD drops 1.85%, silver (XAG/USD) is losing more than 5%, after breaking below the August low.
Gold levels to watch
The immediate support in XAU/USD is seen at $1,860/62 (August low); the next strong barrier could be seen at $1,815/20. A recovery back above $1,880 would alleviate the short-term bearish pressure, while above $1,915 the technical outlook would improve.
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