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Gold plummets, approaches $1,100/oz

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 4, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Córdoba) - The yellow metal is falling sharply on Wednesday amid a stronger US dollar on rising expectations about a rate hike by the Federal Reserve in December. The ounce broke below yesterday’s lows at $1,114.30 and dropped further.

    Recently bottomed at $1106.60 hitting the lowest level since October 2. Spot gold remains trading near the lows, still holding a strong bearish momentum.

    Technical indicators show oversold readings in every time frame but the decline does not stop. Today is falling for the six day in a row, accumulating a decline of more 6.40% from last week highs.

    Eyes on $1100

    Greenback is rising across the board, as the US ADP employment report and Yellen’s words continue to leave the door open for a rate hike at the next Fed’s meeting. Gold continues to decline and it could remain weak at least until the NFP report.

    The next key support is the $1,100 area. During September it traded momentarily below but quickly bounced back above; on October, it approached but rebounded to the upside. Now the mentioned level is exposed and it could be tested. If it remains above, possibilities of a bullish correction would rise.
    For more information, read our latest forex news.
     

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