Gold threatening more lows
Gold is trading back near its recent lows and looking vulnerable on Friday.
Recent gains in the dollar have further weighed on the yellow metal, with this week’s assessment from the Federal Reserve not quite dovish enough to satisfy the gold bulls that are still hanging on.
US Dollar Index
Source – Thomson Reuters Eikon
It is worth noting that momentum may be fading in the decline, something that was evident when it hit the lows last week as well, which makes the area around $1,260 all the more interesting.
Gold Daily Chart
A break below here may bring some of that momentum flowing back, although continued declining momentum into it may strongly indicate that there’s not yet the appetite there to see gold breach these levels. Of course, if the dollar is going to continue to outperform on the upside, the gold bulls may be fighting against the tide.
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