- XAU / USD cannot escape the strength of the dollar.
- Gold loses nearly 2% on Wednesday, the worst day in weeks.
Gold is falling sharply on Wednesday accompanying the sharp decline in stocks throughout the world. XAU / USD is trading down about 2%, at the lowest level since late September.
The quote began the day testing levels near $ 1910 and has just marked lows for the day at $ 1868. It is trading in the $ 1875 zone, slightly off the lows but under heavy downward pressure.
If they remain at these levels, the September lows, which are located at $ 1,850, would be exposed. The technical outlook favors a bearish scenario and will continue that way as long as the pair fails to recover $ 1915. To see a more forceful change that favors the rises, the metal must overcome and affirm itself above $ 1930, thereby breaking a bearish line.
From the fundamental point of view, the fall in gold occurs due to a strengthening of the dollar and despite the aversion to risk and the decrease in the yields of Treasury bonds. This shows that gold is currently being considered as another asset, and not as a refuge.
Credits: Forex Street
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