Gold drops as dollar rallies

By FXStreet FXStreet (Mumbai) – Gold prices dipped in Europe as the uptick in the treasury yields ahead of the FOMC meeting pushed the Greenback higher across the board.

Dips below 5-WMA

Prices turned lower from the high of USD 1077.54 and fell below the 5-WMA located at USD 1072.52 levels. The European equity markets rallied and reduced the haven demand for the metal. Meanwhile, the USD index gained 0.30% to trade few points away from 98.00 levels.

Both the factors ensured the yellow metal fell to a session low of USD 1065.30. Ahead in the day, the metal traders could continue to track the USD index as the data docket is empty.

Gold Technical Levels

At USD 1067.50/Oz, the immediate resistance is seen at 1072.51 (5-WMA), above which the gains could be extended to 1079.67 (Friday’s high). On the other hand, a break below 1062.20 (Friday’s low) would open doors for a drop to 1052.20 (Nov 27 low).
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Source:: FX Street