- XAU / USD falls below $ 1,850, defying the recent rally.
- The DXY strengthens and rises above 91.00, the highest level since Monday.
Gold broke below $ 1,850 and fell to $ 1,837, hitting the lowest level since Monday. It lost over $ 20 in a few minutes and then rallied towards 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, driven especially by a rally in the dollar against major European currencies. At the same time, US yields hit new highs and Wall Street indices turned negative.
Market participants await the outcome of the Brexit negotiations and await talks between US lawmakers on a new fiscal stimulus. In addition, they are positioning themselves for a key Thursday with the summit of the European Union and the meeting of the European Central Bank.
From a technical perspective, the Positive outlook for gold was damaged with the break below 1850. A recovery above this level would ease the pressure. If the decline persists, the next support is located at $ 1830, followed by $ 1,815.
Gold technical levels
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