The price of gold dropped to a record low of $1,685 per ounce in the Asian session on Monday and traded at $1,752 per ounce in the European session.
A reason for the price of the yellow metal being in reverse to the dollar in a long-term selling mood might be US economic improvement.
Investing.com reported that despite being up on Tuesday in Asia, the gold price trend remained close to multi-month lows due to a stronger dollar and increasing bets that the Federal Reserve will activate asset tapering earlier.
The US Bureau of Labor Statistics’ July jobs report on Friday indicated that non-farm employment was up to 943,000, which is 73,000 higher than forecast and 5,000 more than the previous month.
“Job openings increased to a series high of 10.1 million on the last business day of June. Hires increased to 6.7 million while total separations edged up to 5.6 million,” it said.
With a record high in payrolls since August 2020, CBS News reported on Monday that “the US economy has rebounded with unexpected strength as the rollout of vaccines has helped businesses to reopen or expand hours”.
CBS MoneyWatch also quoted ZipRecruiter labour economist Julia Pollak as saying: “In June and July, we saw these huge increases in restaurant dining, air travel, hotel occupancy rates, pretty much every measure of mobility and consumer demand and services. That’s been forcing employers to re-staff, to build capacity and fill jobs.”
Based on these fundamentals, trading recommendation for this week - investors should trade gold in the range of $1,750 to $1,700 per ounce, or wait to buy gold at $1,700 with a stop-loss function setting at $1,690 per ounce and a take-profit function at $1,740.