FX.co ★ Gold Poised For More Declines!

Gold dropped significantly in the fresh start of the week coming back below 1,700 psychological level. Dropping below 1,691 Friday's low could signal that a deeper decline is coming. The current drop could represent a good selling opportunity.

The yellow metal could continue to drop as long as the USD appreciates versus the other major currencies. The dollar is into an appreciation phase as the US Dollar Index has confirmed an upside reversal.

The price's failure to stabilize above 1,700 signals that the sellers are very strong in the short term and that the rate could reach new lows.

Gold Trading Conclusion!

Today's drop below Friday's low represents a selling opportunity, signal. If you'll sell it from here, you can hide your Stop Loss above the former peak high, above 1,717 level.

1,670, 1,660, and 1,650 could be used as downside targets if the rate continues to drop.