Spot gold remains under pressure after several recovery attempts earlier this week. The yellow metal thus finishes the eighth from the last nine weeks with declines, confirming a steady bearish trend established this year.
A strong dollar remains the key reason behind gold’s weakness. The greenback continues to rise across the board, refreshing one-year highs. The increasing trade tensions between the US and China and the Fed tightening path give a strong support to the buck, which prevents the precious metal from a more sustainable recovery.
From the technical point of view, gold needs to get back above the $1,220 level to form conditions for another leg higher. Otherwise, the price could accelerate the downtrend and challenge the key $1,200 support. So it’s still too early to call a bottom, though a weekly close above the $1,210 region will reduce the immediate bearish risks.
Comments
Log in or sign up to join the conversation.