Gold falls to 12-month lows in trading today
And in overnight trading, price fell below the December low @ $1,236.55 and since then it's been a continued push lower. But more to the point is that the fundamental driver behind gold's decline over the last two months has been the fact that the dollar is rising.
And today is no different.
Gold is now trading at the lows for the day down 0.4% as the greenback maintains its advance, and looks set to move towards a test of key support levels nearby. The first of which will be the $1,216.78 level followed by that of the $1,204.90 level. Following which, the $1,200 handle will be the last stand before a plunge lower $1,195 and $1,180.
Putting aside the technical levels, the gold trade now is akin to the dollar trade so just be wary of that. As mentioned several times before, gold has lost much of its allure as a haven asset due to the Fed hiking rates and right now it appears to be a mirror of the dollar's movement rather.
A good example of that is looking at how closely gold traces the inverse movement in USD/CNH since the start of the year:
