Against the background of the strengthening of the dollar, the price of gold continues to decline. Today, the XAU/USD pair reached a new 6-week low at 1.1710, declining towards key support levels 1700.00, 1690.00 (EMA200 on the weekly chart), 1682.00 (Fibonacci 38.2% retracement of the December 2015 rally and 1050.00 mark).
Gold quotes are extremely sensitive to changes in the monetary policy of the world's leading central banks and, especially, the Fed. Gold does not bring investment income, but is in active demand in situations of geopolitical and economic uncertainty, as well as a protective asset in the face of rising inflation. However, it seems that it is losing its role as a protective asset to the dollar, and in the event of a breakdown of the zone of long-term support levels of 1700.00, 1690.00, 1682.00, the long-term bullish trend of gold and the XAU/USD pair may be in jeopardy. It is hard to believe so far, but the fundamental and technical picture is still in favor of just such a scenario.
Support levels: 1700.00, 1690.00, 1682.00
Resistance levels: 1742.00, 1746.00, 1759.00, 1768.00, 1800.00, 1814.00, 1832.00, 1875.00
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