Home Gold Price Analysis: XAU/USD losses $20 in a few minutes, tumbles to $1837
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Gold Price Analysis: XAU/USD losses $20 in a few minutes, tumbles to $1837

  • XUA/USD drops below $1850, challenging the recent recovery.
  • DXY strengthens and rises above 91.00, to highest since Monday.

Gold broke below $1850 and tumbled to $1837, reaching the lowest level since Monday. It lost more than $20 in a few minutes and then rebounded back toward the $1850 area. The move was triggered by technical factors and a stronger US dollar across the board.

The US Dollar Index jumped to 91.05, boosted particularly by a rally of the greenback against main European currencies. At the same time, US yields printed fresh highs, and Wall Street indexes turned negative.

Market participants await the outcome of Brexit negotiations and look to conversations between US lawmakers regarding new fiscal stimulus. Also, they are positioning ahead of a key Thursday with the European Union summit and the European Central Bank meeting.

From a technical perspective, the positive outlook for gold was damaged with the break out under $1850. A recovery back above would alleviate the pressure. If the decline persists, the next support stands at $1830, followed by $1815.

Levels to watch

 

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