Spot gold falls to a two-month low as the US dollar strengthens

September 24, 2020 - 1 month ago
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As a firmer greenback continues, stop-losses weigh in on the precious yellow metal, as it sinks to a two-month low of $1,855 overnight.

Concerns over the economic recovery in the U.S. and Europe resurfaced, amid intensifying second-wave of the coronavirus, which further fuelled the US dollar’s demand as a safe-haven.

U.S. Federal Reserve Chairman Jerome Powell told a congressional panel Wednesday that further fiscal stimulus is still needed for the U.S. economic recovery to continue.

Looking ahead, the greenback safe-haven demand is likely to remain in demand, as coronavirus fears mount.

However, the whiplashed price action could turn the US dollar lower as the market awaits the U.S. Jobless Claims and Day 3 of the Fed Chair Jerome Powell’s testimony which will be closely watched for some near-term trading opportunities.

From a technical perspective, although both critical support level at $1,880 and also $1,860 has been achieved, the current downward pressure could fall in the bulls lair at $1,820-25.

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