Gold lower on stronger greenback

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FXstreet.com (Barcelona) - The European selloff towards the greenback strengthened the USD, which helped the precious metal to lose value to $1770 in the European opening, and like the European currencies, the XAU/USD retraced part of the losses to 1778 only to fall back to its lows ahead of the NY opening.

Just released was the better than expected improvement in economic optimism, according to IBD/TIPP, pointing to a rise from 51.8 to 54.0 in October, beating the consensus of 52.3. Gold is edging lower by -0.19% on the day ( GMT ) at 1774.

MIG Bank analysts believe the precious metal is testing its short-term up trendline and has support at 1764. "The strong resistance area between 1791 and 1803, coupled with overbought conditions, suggests limited short-term upside potential", wrote analyst Bijoy Kar, expecting a phase of weakness given the recent overextended rise.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Forex and Currencies

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