Gold’s slide accelerated! Dollar strong rebound! Gold plunged nearly $40 from the day’s high! Agency: gold price may still have room to plunge!

On Monday (January 11), the dollar index rose significantly in early Asian trading and is now trading around 90.40; Spot gold’s decline accelerated, with prices briefly falling below $1,820 an ounce.

Spot gold briefly fell to around $1,845 an ounce as Asian trading opened on Monday, but quickly rallied more than $10 to hit as high as $1,866.78.

However, as the dollar rallied strongly, gold came under significant downward pressure, hitting as low as $1,817.81 an ounce.

According to Economies.com, gold has more room to fall after falling below $1,838.10 an ounce, with a target of $1,665.00.

If gold were to consolidate above $1,838.10 an ounce, that would trigger a rally attempt, with an initial target of $1,890.00 an ounce, Economies.com said.

Gold tumbled more than 4 per cent on Friday as the precious metal was hit by the prospect of a smooth transfer of power in Washington and a surge in US Treasury yields.

Spot gold settled Friday at $1,848.86 an ounce, down $64.95, or 2.39%, from an intraday low of $1,828.09. Spot gold fell $49.42, or 2.60 percent, last week, its worst week since November.

The Democratic-controlled Senate raised the market’s bets on a big stimulus package, sending the yield on the benchmark 10-year Treasury note to its highest level since March.

Jeffrey Sica, founder of Circle Squared Alternative Investments, said there has been some “temporary profit-taking” since U.S. President Donald Trump agreed to an orderly transition of power.

Some analysts also said that some investors may also be moving money into bitcoin, which has extended a brief rally.

Gareth Soloway, the chief market strategist at In The Money Stocks, says investors are dumping lower-yielding assets like gold for more volatile ones like Tesla shares and bitcoin, but Soloway isn’t selling gold just yet.

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