Gold erased all recent gains
Market volatility remains limited, but we are seeing fairly clear movements in the precious metals market. Gold is one of the worst performers, as its price broke below $ 1,800 but is currently testing $ 1,790 level. Earlier EURUSD fell below 1.1300, for the first time in a week. In addition, we saw a slightly stronger rise of bond yields. The recent decline in gold prices is countering the effect of seasonality, which usually supported precious metals prices at the end of the year. At the same time, it is also worth remembering that a positive seasonal effect for gold or the equity market often also takes place in January. At the moment, the monthly return on gold fell below 1%, which is one of the worst results in the last few years.
Gold prices are under pressure. The key place of support, apart from the aforementioned $1,790 level, is the upward trend line and the 23.6% Fibonacci retracement of the last bearish wave launched in August. Source: xStation5
