Gold sinking into $1,240, looking for a new low for 2018

Precious metals under pressure as the US Dollar stands tall against commodities.
Trade tensions have seen the Greenback spring back to life across the broader markets.

Joshua Gibson FXStreet

Gold is holding close to 2018 lows as the precious metal continues to slump, with traders opting to hold USD for the time being.

Trade tensions continue to rise between the US and China, with further tariffs due to come into effect as last Friday's reciprocal tariffs saw neither side willing to back down.

Broader markets have recoiled from the ramped-up trade tensions, with traders flocking into safe havens and buying up the USD, driving commodities and equities into lows, and Gold continues to slump on the back of a rising Greenback.

Gold levels to watch

With Gold tipping into lows, 1,241 remains the current week's low, with 2018's low nearby at 1,237. The 1,235 region present heavy support for Gold prices, with a firm rejection taking place at the same region back in December of 2017. Bulls are looking up from the bottom of a very steep decline, with resistance resting at the week's high at 1,265, with the previous week's peak far above at 1,309.

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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