Gold prices have been sharply in retreat on Thursday afternoon as the US dollar appreciates across the board. Bullion is down over 3% in the past two days.
Dollar strength is currently the main trigger driving down the price of gold. Everything is quite simple here: the Fed at its June meeting said it was nulling two rate hikes by the end of 2023, although earlier the regulator’s narrative was more categorical. The dollar bulls caught some strong signals due to the Fed’s revised dot plot, pricing them into the price of gold.
From the technical standpoint, gold has broken through the $1,816-1,910 side trend and breached the $1,800 level by the time of writing. Strong support is at $1,798, where the price action is currently located. If that level is breached, the way will be open for the bears to reach $,1790/oz.