Gold extends its free fall on risk appetite

Gold is trading lower on Tuesday, extending a sharp decline for the second day in a row. The market focuses this week on news of coronavirus vaccines and rumors that Janet Yellen will be the United States Secretary of the Treasury in the Biden administration.

Furthermore, President Donald Trump appears to be taking steps to accept and acknowledge his electoral defeat in early November. The market has received this news with relief.

In this environment, stocks are trading higher, the dollar remains in its range and metals such as gold and silver are registering large falls.

Dollar holds positions

The United States dollar is trading negatively on Tuesday. It does however, remain in the range traded in recent days, between 92.15 and 92.60. Yesterday, the index was influenced by the news of COVID-19 vaccines, increased confirmed cases, and rumors that Janet Yellen will be the United States Secretary of the Treasury during the Biden administration.

Right now, the price of the DXY is at 92.38, which is down 0.13% so far today.

Technically, the dollar was supported by the level of 92.15 and later by the level of 92.00 that was temporarily broken yesterday. A break below those levels would send the DXY to the 91,790 area. It would be its lowest since May 2018 and could increase the price of gold and silver. 

Gold is trading lower on Tuesday for the second day in a row and is already testing the zone of $1,800 per ounce. In the past two days, the metal has lost 3.21% from the week’s opening price of $1,870.

Right now, the XAU/USD is trading at $1,810, which is a 1.48% decrease on the day. Technically, the indicators are pointing lower, and $1,800 appears as the next support. The 200-day moving average at $1,796 right now could hold the metal back.