Gold Price News and Forecast: XAU/USD is trading 0.54% lower as the dollar strength continues

FXStreet Team FXStreet

Gold Price Analysis: After the break lower there could be a retest before the move continues

Gold has broken lower over the past couple of sessions as the greenback strength gathers momentum. It is hard to confirm if this is a deep correction or a reversal although the latter seems less likely. The global risk environment has not been too great either and gold usually shines during times of turmoil so there may be a lagging effect for this theme.

Gold: Momentum indicators are confirming the deterioration

Gold consolidation turned into sharp correction yesterday as everything linked to the dollar took a hit. Keeping in mind the Average True Range of gold is currently $28, a level that has not even been reached in the past two weeks, this was a sudden but sharp decline on gold. Technically it is also a key shift in sentiment. The consolidation between $1902/$2015 has been broken by an intraday drop to $1882. This may not has been sustained into the close, but there is a decisive deterioration in momentum now and downside pressure is growing.

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