Gold breaks below the $1,200 level as the dollar marches higher
Risk-off? Gold falling? Two words that used to work together but hasn't been the case for much if not the whole of 2018.
As I've mentioned several times in the past, gold has lost its allure as a safe haven (due to the Fed hiking rates) for the most part and now trades very much as a dollar proxy more than anything else.
Below $1,200, further support is seen from the March 2017 low @ $1,195.08. After which, the next support level will come from the 27 January low @ $1,180.66.
A very common chart I've mentioned in the past that mimics the gold trade a lot is the Chinese yuan. Right now, the dollar is breaking higher against the offshore yuan to highs of 6.89 and that is also seeing a breakout in gold to the downside:
