Gold slides as DXY recovers
9 January 2024The recovery in strength on the DXY has led to Gold reversing strongly from the all-time high of 2088 which was reached at the end of 2023. Last week, the US employment data was released
stronger than expected with the Non-Farm employment change at 216K (Forecast: 168K), however, wage inflation remained unchanged at 0.4%. This set of data is likely to push back the anticipated timeline for potential Fed rate cuts, from March to May, which could see further upside potential for the DXY.
Gold is currently trading along the 2032 price level which coincides with the 50% Fibonacci retracement. If the DXY continues to climb, further downside can be expected for Gold. Look for the price to test the bullish trendline at the 2020 price level to signal further downside, with the next key support level at 2007.
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