Gold slammed amid dollar strength

It has been a bad week for precious metal so far, and both gold and silver continued to decline on Wednesday. Silver was down another 4%, trading at 23.45 USD, with gold sliding 1% to trade near 1,880 USD.

Moreover, both metals confirmed a bearish breakdown from their respective consolidation patterns, which could lead to further declines.

It seems investors are taking profits from the short-USD trades, which is driving the greenback higher, which is usually negative for precious metals. 

Meanwhile, Asian firms’ outlook for the next six months tracked by the Thomson Reuters/INSEAD Asian Business Sentiment Index jumped to 53 in the third quarter from an 11-year low of 35 in the second, according to the survey of 103 companies across 11 Asia-Pacific countries.

Yesterday, stock markets staged an impressive recovery, helped by the Federal Reserve Chairman Jerome Powell, who said in his testimony to Congress that the central bank remains committed to using its tools “for as long as it takes, to ensure that the recovery will be as strong as possible, and to limit lasting damage to the economy.”

Later in the day, European PMIs for September are due, along with US PMIs released during the afternoon session.

Source: https://www.axiory.com/market-news/gold-slammed-amid-dollar-strength