XAU/USD: Gold trades around $1,820
XAU/USD: Gold trades around $1,820
The price of gold fell towards $1,820 per troy ounce on Wednesday and remains under pressure from a strengthening dollar.
The Dollar Index (DXY) is at 106.79 after hitting an 11-month high on Tuesday on the back of strong U.S. employment data and higher U.S. Treasury yields.
It is worth noting that the lack of buying interest indicates a continuation of the bearish trend. In addition, the hawkish outlook of the Federal Reserve (Fed) is contributing to high U.S. Treasury yields and a stronger dollar, which also points to a further decline in gold prices.
In addition, the JOLTS report showed an increase in U.S. job openings in August, suggesting that the labor market is still tight and emboldening the Fed to raise interest rates.
However, a possible recession and concerns over China's weak housing sector continue to weigh on investor interest in risky assets, which is supporting gold.
Gold is currently trading down 0.03% at $1,822.77.
A break of the $1,815 support level will allow gold to test the $1,800 level, a break of which will open a direct path to the $1,770-$1,760 area.
At the same time, if gold is able to overcome the $1,830 mark, it could trigger its growth to the $1,850 area.
Read also: BTC tries to test the $27,500 level.
