Gold falls on the dollars run higher

Technical Analysis

Down over $30 now

The price of gold has moved sharply lower as the USD moves higher.  Looking at the rankings of the major currencies, the USD has taken over as the strongest of the majors. The GBP remains the weakest. The dollar was behind the NZD and the CAD at the start of the NY session.

The move higher in the greenback has helped to push the price of gold. Looking at the hourly chart below, the price is back below the $1900 level and also the 100 and 200 hour MAs at $1908.19 and $1905.04 respectively (blue and green lines in the chart below).   The price is currently looking to test lower trend line at $1889.31.  Getting below that level with momentum, would have traders looking toward the swing lows from last week at  $1882 (Thursday’s low) and Wednesday’s low at $1873.

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