Gold is extending its downward correction and is trading around $1,990, a shape fall of over $33 on the day, and a total of $85 from the all-time high of $2,075. The 2011 peak of $1,921 is a distant support line, but XAU/USD may find support at around $1,950.
After the initial fall to $1,990.09, prices have been stabilizing, but gold has been unable to recapture the round $2,000 level and is trading at the lowest level in a week.
The US dollar is gaining ground in recent days, putting pressure on the yellow metal. There is an inverse correlation between gold and the greenback.
Silver is also sliding, changing hands below the $28 level. XAG/USD has been holding up better than XAU/USD.
The move is the result of ongoing profit-taking after the remarkable rally. Here is the precious metal's fall on the 15-minute chart
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