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Gold falls as low as $1167.17 – lowest in 4 years

Gold finally collapsed below the “taper tantrum” lows from 2013 and fell to $1167.17 – the lowest level since August 2010.

Can the precious metal fall even lower? Or has it reached a level in which the intrinsic demand (weddings in India, industrial use) will keep it bid?

What’s behind the fall? Basically, the Fed  ended its QE program and had a bullish sentiment to offer markets, but the actual move down in gold came just as the Bank of Japan picked the baton.

It is also important to note that the markets are somewhat wilder than usual due to end-of-month flows.

Long term support appears at $1025, a place the pair stalled at on the way up. A big resistance level is $1400 which capped XAU/USD in the past year or so.  Here is how it looks on the monthly chart:

For more on gold, silver (which also collapsed) and other previous metals, see Trading NRG.

Gold down to levels last seen in 2010 XAUUSD monthly chart end of QE despite BOJ easing

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.