Gold Price Forecast: Bears eye a daily close below 100-DMA amid dollar’s upsurge
Gold (XAU/USD) finally breached the August low of $1863 on Wednesday, as the sell-off continued amid persistent US dollar strength against its higher-yielding rivals. The yellow shed another 2% to reach the lowest levels in six weeks at $1856 before settling the day at $1863. Concerns over the economic recovery in the US and Europe resurfaced, amid intensifying second-wave of the coronavirus, which further fuelled the dollar’s demand as a safe-haven.
Fed's gospel choir off-key with markets
Gold's close below its August low at $1863.00 an ounce is significant, and it is now testing its overnight lows at $1855.00 an ounce. The 100-DMA nearby at $1843.00 an ounce should provide the same initial support as it did with silver. Both metals are now entering oversold territory on their technical indicators as well, also modestly supportive.
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