Gold Price Analysis: XAU/USD retraces biggest losses in seven years above $1,900
Gold picks up the bids near $1,926.70 during the pre-Tokyo Asian session on Wednesday. The bullion dropped by around $120 the previous day, marking the biggest drop since late-April 2013, amid market’s rush to the US dollar. Though, the recent risk reset seems to have favored the pullback moves.
Breaking: Gold prices collapse to $1,910 as huge profit-taking kicks-in
Positioning squeeze has taken place as the bulls, feeling the heat, bail out in droves, triggering stop losses to the bottom of the abyss. Gold is currently trading down 5.8% at $1,916, falling from a high of $2,029.98 on the day.
Real rates have been on the incline since last week’s Nonfarm Payrolls report which beat expectations. This, in the main, has also given the US dollar a boost, making a double bottom in the 4HR charts.