Gold Price News and Forecast: XAU/USD came under strong bearish pressure in early American session
|Gold Price Analysis: XAU/USD plummets multi-month lows below $1,840 on renewed USD strength
The XAU/USD pair fell sharply in the last minutes and touched its lowest level since mid-July near $1,838. As of writing, the pair was trading around $1,840, losing 1.64% on a daily basis.
The renewed USD strength and the risk-on market environment seems to be hurting gold. The data published by the IHS Markit revealed on Monday that the private sector's business activity in the US expanded at an impressive pace in November. The Manufacturing PMI and the Services PMI rose to 56.7 and 57.7, respectively, and both readings beat analysts' estimate by a wide margin.
Gold stressed into year end?
The second wave of Covid infections globally and increasingly stringent lockdowns which in turn have led to a resurgence of uncertainties over the near term growth outlook. And they are overshadowing the positive vaccine developments that offer a more optimistic view for the medium term. Granted, moderation in activity was widely expected after the Q3 surge as economies reopened following the pandemic shut-downs. But while the new restrictions are less onerous, winter conditions will exacerbate the negative effects and will add to worries over a dreaded double dip recession.
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.