Gold slips through $1300 as selling momentum picks up speed
The end of the trading week is wrapping up to be an unsuccessful one for Gold buyers, after the Yellow Metal surprisingly slipped through psychological support at $1300 on the back of Dollar strength throughout the FX markets.
$1300 had been viewed as a potential pivot level for Gold and we will now closely monitor if selling momentum picks up following the decline below this key level.
Nothing spectacular is behind the selling seen in Gold, other than the return of Dollar strength as global economic health fears loom in the background. The Dollar Index has charged higher to its strongest level in over two weeks, leaving a number of its global counterparts behind in the background. Dollar strength has also encouraged the threat of the EURUSD to return to 1.11 for the first time in nearly three weeks.
Elsewhere the spectacular return of currency fears for the Turkish Lira has encouraged another round of concerns for high-yielding emerging market currencies. The Brazilian Real, Mexican Peso and South African Rand have all been caught in the headwinds of anxiety that another Turkish Lira crisis is a potential risk ahead.
The surge of weakness in the Rand is one of the most interesting moves to monitor, because it has led to the previous best performing currency of 2019 to reverse all of its gains within the same trading quarter.