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  • Gold loses more than $25, on the worst day since September 5.
  • XAU/USD now below the 20-day moving average, testing $1500.  

Gold prices are sharply lower on Wednesday, on the back of a rally of the US Dollar across the board. Price traded near multi-week highs earlier today above $1,535/oz and currently stands at $1,506 under pressure.  

The Greenback is higher despite political jitters in Washington. Today US President Trump released the transcript from his conversation with Ukrainian President. Later he mentioned that a deal with China could come sooner than “what you think”. US data may have also contributed to the strength seen in the US Dollar as New Home Sales jumped in August. Another key factor behind are higher US yields.  

Other safe-haven assets like the Swiss Franc and the Japanese Yen are falling versus the US dollar, but not as much as Gold.  

XAU/USD testing $1500

The yellow metal bottomed exactly at $1,500 before bouncing modestly to the upside. It is down almost 2% but so far holding on top of the mentioned area. The chart points to the downside as price dropped back under the 20-day moving average, also breaking a short-term uptrend line.  

A consolidation below $1,500 could lead to more losses. The next support might be located at $1,492 followed by the September low at $1,482. Now, $1,510 is the immediate resistance followed by $1,515 (Sep 24 low) and $1,524.