Article by: ETO Markets

After losing the $2,000 mark following the release of the US Nonfarm Payrolls report last week, spot gold continues to decline on Monday. A stronger-than-expected report caused the US dollar to spike, but not for the intended reasons. Because of new worries regarding the direction of monetary policy and its potential impact on the economy, market players bought the USD as a safe haven rather than because they were confident in the strength of the currency.

The 4-hour chart indicates that the risk is likewise biased lower in the near run. Another indication of heightened … interest is the 20-SMA crossing below the 100-SMA above the larger one, which caused XAU/USD to accelerate its decline after breaking below a flat 200-SMA. Meanwhile, technical indicators continue to move steadily southward around oversold readings without showing any symptoms of fatigue. On November 13, the yellow metal hit its lowest point at $…, which must be broken to confirm a … in the following sessions.