Gold’s bullish trend line since the end of 2015 may be tested next after bullion crashed below it’s 200-day moving average earlier this week and breached $1,300 an ounce for the first time this year.
The move comes as rising yields on 10-year Treasuries and a resurgent dollar have damped demand for non-interest bearing precious metals.
If the trend line support gives way, then gold’s next bearish objective would be the previous support and resistance area around $1,200.
Source: Bloomberg Pro Terminal
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