- XAU / USD under pressure at the start of the week, despite positive market climate.
- DXY is trading at lows since 2018, possibly limited metal decline.
Gold is falling on Monday and is losing more than $ 10, while trading at $ 1824. The price fell sharply to $ 1818, reaching the lowest level since December 2, before rebounding to the current level.
The pressure on the price of the metal exists on Monday, in the last full week of 2020, despite the fall of the dollar and the rise in the price of the shares throughout the market.
The Wall Street futures point to a positive open with gains in the main indices in the order of 0.65%. The support in the stock markets comes from the expectation of an agreement for more fiscal stimuli in the US and before the start of vaccinations.
The decline in USD / JPY and the decline in the dollar possibly limited the decline in gold. The US Dollar Index (DXY) hit lows since 2018 and is trading below 90.50. The greenback is one of the weakest currencies on the market, which did not prevent the XAU / USD from falling, although it possibly put limits on it.
The (modest) rise in Treasury yields may be one of the factors supporting the decline in gold, in addition to technical issues. The downward acceleration occurred after the break of $ 1830/25, which had contained the losses in the previous days. The price is trying to return above that level, which would remove short-term downward pressures. A confirmation well below would point to a decline towards $ 1815, below the next support is at $ 1800.
Technical levels
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