Gold falls to two-month low as dollar surges💰
During today's session we can observe a clear strengthening of the US dollar while precious metals took a hit. The dollar index broke above the 103 mark for the first time since January 2017, as investors are gearing up for next week's FED meeting during which a more aggressive monetary tightening is expected to be announced. The most pronounced buying activity was against the euro, which tumbled to levels not seen since April 2017 against the greenback.
Also concerns about slowing growth in China and escalating geopolitical tensions weighed on market sentiment. Russia stopped supplying gas to Poland and Bulgaria as the EU-member countries refused its demand to pay for gas imports in rubles. As a result, surging dollar and higher rates expectations pushed gold prices to two month low.
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Gold again fell below major support at $1900 and reached lowest since the launch of Russian invasion on Ukraine. If current sentiment prevails, downward move may accelerate towards next major support around $1830, which is marked with lower limit of the 1:1 structure, upward trendline and 61.8% Fibonacci retracement of the upward wave launched in August 2021. Source: xStation5
USDIDX - the dollar index rose sharply in April and price is currently testing a major resistance zone around 102.70 which coincides with the upper limit of the triangle formation and 61.8% Fibonacci retracement of the last downward wave. Should break higher occur, upward move may accelerate towards resistance at 108.85 which is marked with the upper limit of the 1:1 structure. On the other hand, if sellers regain control, nearest support to watch for is located around 96.72. Source: xStation5
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