It has been a while since the trading value of gold has not been performing well against the dollar. The dollar’s price seems to be gaining strength versus the yellow metal and the trend appears to be bearish.
Gold’s Prolonged Bearish Trend
Since the beginning of the running week, the value of gold has been diminishing versus the dollar.
The price chart shows that it is the fifth consecutive day that the trading price of gold has continued falling versus the dollar.
The report shows that for the fifth consecutive day, the trend for the yellow metal has continued experiencing a bearish trend.
In this particular period, the USD has continued pressing against XAU, and the trend has constantly moved in a bearish direction.
As a result, the trading price of gold has recorded a three-week low. On Friday, the trading price of gold ended up experiencing a three-week low.
XAU/USD Reaches a Lower Level at $1,750
The early North American session shows that the value of the XAU/USD pair has continued getting pressurized against the dollar. Due to the dip, the value of the pair has dropped to $1,750.
The price chart for gold shows that the value of the XAU/USD has experienced a 0.40% dip in the Friday trading session.
Global Economic Downturn
The global economic downturn has worried the entire investment community. Even economists are worried about the situation of the global economy moving in a negative direction.
As a result of the high risks and worries, global economists and governments are initiating trades for risk-aversion.
Due to the economic worries, the equity markets have also developed a weaker tone on a general level. This means that it would work as a key factor in providing support to gold.
USD is not losing Momentum
The dip in the global economy is working in favor of gold as the investments are finding it to be a safe haven.
However, the United States dollar has been proving its strength as its rally has been growing stronger. This has helped push the dollar into the bullish zone.
The constant rally recorded for the greenback has helped it put a lid on the recovery of gold.
Performance of the USD Index (DXY)
When it comes to the performance of the dollar versus the basket currencies, the overall trend is positive.
The DXY index shows that the value of the dollar has been growing stronger versus the bucket currencies.
The macroeconomic data from the United States is also more substantial than expected. This has helped push the yields for the US Treasury bonds significantly higher.