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Surging US Dollar Pushes Gold Close to 2014 Low

Gold remains under pressure on Tuesday, as the metal continues to lose ground to the strong US dollar. In the European session, the spot price stands at $1207.40 per ounce just above the 2014 low of $1201.97. On the release front, today’s key event is CB Consumer Confidence, with the markets expecting another strong reading above the 90-point level.

Recent sharp gains by the US dollar are weighing on gold prices, as a stronger dollar diminishes the metal’s appeal as an alternative asset to the dollar. The dollar has enjoyed a spectacular September, and gold prices have tumbled over 6% during this period. We could see gold dip below $1200, which last occurred in December 2013.

Over in the US, Pending Home Sales posted a decline of 1.0%, compared to last month’s gain of 3.3%. The important housing indicator has shown strong movement, resulting in readings that have been well off market estimates. US housing indicators continue to paint a mixed picture, as New Home Sales jumped last month, while Existing Home Sales softened and was well short of  expectations.

XAU/USD for Tuesday, September 30, 2014

XAU/USD September 30 at 12:30 GMT

XAU/USD 1207.40 H: 1218.90 L: 1204.45


XAU/USD Technical

S3 S2 S1 R1 R2 R3
1136 1156 1186 1210 1240 1252


Further levels in both directions:


OANDA’s Open Positions Ratio

XAU/USD ratio is pointing to gains in short positions in Tuesday trade. This is consistent with the pair’s movement, as gold has sustained losses. The ratio has a substantial majority of long positions, indicative of trader bias towards gold reversing directions and moving to higher ground.


XAU/USD Fundamentals

*Key releases are highlighted in bold

*All release times are GMT

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

Kenny Fisher [4]

Market Analyst at OANDA [5]
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including Investing.com, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.
Kenny Fisher

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