Gold Price Analysis: XAU/USD breaches 100-day SMA for first since March
Gold looks south, having breached the widely-tracked 100-day simple moving average (SMA) support for the first time since March 23. The yellow metal fell by 1.67% on Wednesday and closed below the 100-day SMA, flipping the long-term technical support into resistance. The SMA is currently located at $1,887, and the metal is trading at $1,878 per ounce.
Wednesday's drop also marked a downside break of the ascending channel represented by trendlines connecting Sept. 28 and Oct. 14 lows and Oct. 2 and Oct. 12 highs.
Asia Market: Global markets tremble
Gold started on the defensive and racked up further losses. Initially, the USD was slightly firmer in response to Europe's falling equities on concerns over rising Covid-19 cases on both sides of the Atlantic. That seemed to provide a level of anxiety for gold investors. The bullion market is likely to be volatile until the elections; ultimately, the falls will be limited by easy global monetary policies.
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