- Gold continues to be unable to benefit amid global trade war concerns.
- XAU/USD drops toward $1,240/oz, approaches last week lows.
A rally of the US dollar across the board sent gold prices to the downside. The ounce was moving sideways around $1,250/oz and broke lower during the US session. Price dropped to $1,242.50 reaching the lowest in a week.
As of writing, it was hovering slightly above the lows, under pressure with the greenback consolidating gains across the board. The US dollar strengthened on a risk-off environment, after US PPI data and ahead of the CPI reading on Thursday.
The rally of the dollar was the main driver of the XAU/USD decline. Gold is losing today 0.95%, about to post the third lowest close in a year.
Levels to watch
To the downside, immediate support is seen at $1,240 below that level attention would turn to $1,237 (YTD low) and under that area at $1,230. On the upside, resistance levels could be located at $1,246 (Jul 10 low), $1,253 and $1,260. A daily close on top of $1,260 is needed in order to remove the bearish pressure.
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