Gold Price News and Forecast: XAU/USD trades 0.29% higher after the recent price drop
|Gold Price Analysis: XAU/USD catches a bid at $1850 but the retracement may not be over
Gold has been moving in a downward trajectory since the greenback strength kicked in on 1st September. Since then, the greenback has broken out of consolidation zones in EUR/USD and most of the other majors. The market was looking towards the Fed to see if they would add to their stimulus programs but they have been deflecting the pressure over to the White House who continues to stall on a fiscal deal.
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Gold declines below $1,900 amid stronger corona and dollar
The gold price dropped below $1,900 amidst Covid-19 cases increases in the West and the US dollar appreciation. So, what happens next with the yellow metal?
For the time being, things are not looking good, my bull friends. The bearish trend in the gold market continues. As the chart below shows, we saw a significant selloff on Monday with gold prices decreasing from above $1,950 to $1,909. To make matters worse, the decline continued on Tuesday and Wednesday, with the price of gold dropping below the critical level of $1,900, for the first time since the end of July.
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