- XAU / USD is heading towards the lowest close in months, the worst day since August.
- The US dollar extends gains against major currencies, cuts losses against emerging market currencies and commodities.
The Gold is falling sharply on Monday amid risk appetite following news that Pfizer’s vaccine was more than 90% effective. The yellow metal is down nearly 5%, trading at the lowest level since late September.
Earlier on Monday, the gold it was trading above $ 1,960. From those levels, it has dropped more than a hundred dollars and is about to test the September low of $ 1,847. A break to the downside would further deteriorate the technical outlook for XAU / USD.
Initially, gold began to pull back due to risk appetite after the vaccine announcement. Now, the slide has gained traction amid higher U.S. bond yields and a rally in the U.S. dollar across the board. The DXY index is approaching the 93.00 level, after bouncing from monthly lows. On Wall Street, the Dow Jones is rising 3.75%, retreating from the highs.
The fall of gold is the highest since August 11 and could post the lowest daily close since July. The sharp turn reflects the rapid shift in market attention since the US election to vaccine issues.
Credits: Forex Street
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