Gold back into near-term lows as Greenback refuses to go down

Gold cuts its bull-run off prematurely, returns to the week's bottoms on a jumping USD.
Rising confidence in the XAU is struggling to make headway despite last week's bump.

Joshua Gibson FXStreet

USD buyers stepped back into the fold during Wednesday's US trading session, bidding the Greenback higher once again and sending XAU/USD back into the week's lows near 1,220.00.

Precious metals are coming under pressure from the Greenback once more, following Gold's rise last week from 1,180.00, but USD action is hammering the brakes on the precious soft metal, and Gold prices have halted their ascent, knocking into mounting resistance from the 1,230.00 region.

Despite Dollar pressure, Gold continues to trade into a two-and-a-half week high, with frequent swings in broader market sentiment keeping the USD from making sustained moves in either direction.

Gold levels to watch

Gold bugs are desperate to begin marking in long-term gains for the aureate alloy, with the October calendar month looking to etch in some upwards movement after Gold closed to the downside for the past six consecutive trading months; XAU/USD prices have more or less consolidated for several months between 1,180.00 and 1,210.00, and unless Gold bidders can push the soft metal into higher territory against the sometimes-popular Greenback, then a decline back into familiar lows could be on the cards as the Daily candlesticks begin to price in a bearish rollover, with technical indicators beginning to lean back towards the downside.

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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