Gold drops to test YTD lows as dollar strengthens
- Recovery in gold prices halted below $1200, erased daily gains and dropped back to levels near $1190.
- Greenback gained momentums during the US session and DXY hit fresh 1-year highs.
Gold peaked earlier today at $1,198/oz but the reversed and erased gains. The price fell to $1,191.80 hitting a fresh daily low, cents above the year-to-date low it hit yesterday at $1,191.50. As of writing, XAU/USD was trading at $1,193 flat for the day, holding under the $1,200 and keeping the bearish bias intact.
Concerns about Emerging Markets did not favor the demand for gold. Price action continues to be driven by the US dollar. Recently, while gold turned to the downside, the Dollar Index rose above 96.60 hitting a new 13-month high
Gold is consolidating yesterday’s moves: the break of a 1-week range and also of the $1200 handle, so the bearish tone remains intact. On a weekly basis, gold heads for the sixth consecutive negative weekly close.
XAU/USD Technical levels
To the downside support levels area seen at $1,191.50 (Aug 13 low), $1,188 and $1,180 (Jan 27 2017 low). On the upside, resistance could be located at $1,199, $1,205 (last week low) and $1,215/17.
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
