Gold bounces to $4,080 after breaking below March low
Gold is currently trading at $4,080 levels after touching a low of $4,024 earlier. The precious metal broke below the March low of $4,099 yesterday.
The break lower is attributed to a technical breakdown since Friday, with gold now trading below the 200-day moving average for the first time since October 2003.
The general risk mood is looking better today, with S&P 500 futures up 0.4%, but the backdrop remains tough due to the US-Iran conflict and hawkish Fed expectations.
The next key level for gold is the $4,000 mark, which could be followed by a drop to $3,300 to $3,500 if the fundamental backdrop does not shift.