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Gold still threatens the $1,200 figure
Commodities
08/10/2018

Gold still threatens the $1,200 figure

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.

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.

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