Gold breaks below $1150

By FXStreet FXStreet (Córdoba) – Gold is falling more than 2% on Thursday, extending yesterday’s losses. The ounce recently dropped to $1145.70 hitting the lowest since October 9. Currently it trades at $1147.60.

While gold prices plummeted stocks in Wall Street are falling modestly. The Dow Jones is down 0.28% and the Nasdaq drops 0.45%. The US dollar is falling against European currencies but is up gains the yen and mixed versus commodity currencies. Crude oil is flat, hovering near $46.00 the barrel (WTI).

Gold retreats or resumes the decline?

A few days ago, gold was breaking important resistance levels and jumped approaching $1200. Last week it started a bearish correction that now it has accelerated pushing the price below the important $1150 area. From yesterday’s highs it has fallen $35.

The yellow metal is about to close significantly below the 20-day MA as the downside pressure persists. The next area of relevant support might be seen around $1140, where also the 100-day MA is located.
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Source:: FX Street