Gold Price Analysis: XAU/USD at four months lows, testing $1800
XAU/USD is falling for the second day in a row extending the correction from record-high levels. Recently bottomed at $1,800/oz, the lowest level since mid-July. The area around $1,800 capped the downside for now, as the bearish pressure is still elevated.
Gold takes out key supports and plunges to four-month low
Spot gold continues to spiral lower on Tuesday, falling to the lowest in four months, pressured by strong risk appetite on vaccine hopes and signs of eventual start of transition in the White House. Bears broke below first key support at $1850 (Sep/Nov base) on Monday and took out double-Fibo support at $1836/32 (Fibo 38.2% of $1451/$2074 / Fibo 23.6% of $1046/$2074), to crack psychological support at $1800, reinforced by rising 200DMA, on Tuesday.
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