Gold breaks to the downside hits 2-week lows near $1275

• Yellow metal under pressure amid a stronger US dollar, higher equity prices and a rebound in US yields.

• XAU/USD losses $20 in two days, extends reversal from above $1300. 

Gold prices accelerated to the downside today and particularly after the beginning of the American session, resuming the bearish move. The yellow metal is falling for the fourth day in-a-row and it is down almost $30 from the weekly high. 

Recently broke under $1280 and tumbled to $1275, the lowest level since May 3. As of writing, is trading near the lows with the bearish pressure intact. The next support might be seen at $1271 that protects May and April lows seen at $1266.

The move lower took place amid a stronger US dollar across the board. The DXY is up for the fourth consecutive day, trading slightly below 98.00, also at 2-week highs. Gold was also affected by the rally in equity prices. In Wall Street the DOW JONES is up 0.15%, testing yesterday’s top. Another contribution came from US yields that turned higher after the beginning of the US session. 

The weekly chart shows gold unable to move firmly away from the $1290/$1275 range. It was rejected from above $1300 and also from under $1275. The sharp reversal from $1303 added to the current negative tone. A weekly close above $1290 would point to further gains while clearly below $1275 should open the doors to more losses. 

Source: Fxstreet


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