Gold drops further to test 1-year lows
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Gold drops further to test 1-year lows

  • XAU/USD extends losses and hits lowest intraday level since last July.
  • US dollar consolidates gains across the board.

A stronger US dollar pushed gold prices further to the downside on Thursday. The value fo the ounce weakened during the US session, breaking below previous low and bottomed at $1,211.30/oz, the lowest intraday level in a year.

Gold remains near the lows. A daily close around current level would be the lowest since March 2017. From a technical perspective, it could a test of $1,200 ahead.

After moving sideways for several days, yesterday gold broke to the downside and dropped modestly. Today, it attempted to recover but the bounced did not last and it resumed the decline. The rally of the US dollar was the main driver ahead of Friday’s NFP report. The US Dollar Index (DXY) rose back above 95.00 today, hitting the strongest level since July 20. Near the end of the day was trading around 95.05, pointing to further gains.

XAU/USD Technical levels

Below $1,210 support levels might be seen at $1,205 (Jul 2017 low), $1,200 (psychological) and $1,194 (Mar 2017 low). On the upside, resistance levels could now be located at $1,217, $1,225 and $1,228 (weekly high).

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