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Gold breaks below $1200, further downside seen

Published 24/11/2016, 13:46
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Investing.com - Gold fell through the key psychological level of $1,200 on Wednesday, pressured lower by the strong dollar.
The precious metal touched lows of US$1,179.75, a level not seen since February 8.
Gold prices could now come under siege, which will likely see falls to as low as $1168.13 and beyond.
Gold, when priced in dollars, becomes more expensive to holders of other currencies when the dollar rises.
Prices of the yellow metal have also been hit by expectations for increased U.S. fiscal spending under Trump.
This could ultimately lead to an era of higher interest rates, which would lift the opportunity cost of holding non-yielding assets such as gold.
Meanwhile, silver was at $16.27 a troy ounce, while copper traded at $2.65 a pound.

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