Gold drops to 4-month lows near $1,240

The ounce troy of the precious metal is intensifying its downside today, currently testing multi-month lows in the area of $1,240.

Gold weaker on USD buying, Trump

The demand for the safe haven metal continued to deflate at the end of the week in response to the persistent buying bias around the greenback, especially accentuated after Trump was elected next US President on Wednesday.

In fact, the US Dollar Index (DXY) has recovered the upper 98.00s and remains on track to re-visit the area of recent highs beyond the 99.00 handle.

In addition, optimism following Trump’s victory along with better prospects for the financial markets remain on the rise among market participants, collaborating further with Bullion’s decline to levels last seen in early June around the $1,240 region.

Gold key levels

As of writing Gold is losing 2.08% at $1,240.05 facing the next support at $1,219.05 (50% Fibo retracement of the 2016 up move) followed by $1,199.00 (low May 31) and finally $1,182.27 (61.8% Fibo retracement of the 2016 up move). On the upside, a surpass of $1,282.32 (200-day sma) would open the door to $1,307.00 (high Nov.2) and then $1,338.20 (spike Nov.9).

To learn more about this topic, check our video analysis: