Breaking: Gold plummets to fresh multi-month lows near $1,780

Eren Sengezer FXStreet

The XAU/USD pair came under sudden selling pressure and plunged to its lowest level since early July at $1,782.28.

The lack of a significant fundamental catalyst behind that move suggests that a technical selloff could be triggered below $1,800 (psychological level/200-day SMA) and cause a sharp decline amid thin trading conditions. As of writing, XAU/USD was trading at $1,785.60, losing 1.3% on a daily basis.

Gold daily chart

With this recent decline, the Relative Strength Index indicator on the daily chart dropped below 30 for the first time in 2020, suggesting a technical rebound could be seen before additional losses. The next technical support is located at $1,750, which could be tested if XAU/USD fails to make a daily close above $1,800.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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