Gold slammed on stronger dollar.
Gold fell sharply today – dropping as much as 4.4% at one point on Monday, as the dollar rallied after strong U.S. labour data raised expectations for early tapering of economic support. Gold started to fall strongly after U.S. Labor Department data showed employers hired the most workers in nearly a year in July and continued to raise wages. This made the markets price in sooner than the expected rate hike by the fed. An interest rate hike by the Fed would also dull non-yielding bullion’s appeal compared with interest-earning assets. The dollar’s spike to a two-week high also hurt appetite for gold by making it more expensive for holders of other currencies .
Expect sellers on upward corrections.
Next support to watch – 1685,0
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