Gold price breaks below $1220 and tumbles

London (Nov 27)  Gold turned to the downside and accelerated after breaking a relevant technical level and amid a broad-based US dollar strength. The greenback rose after a report signaled that US President Trump could impose as soon as next week, a 25% tariff in all imported cars.

The yellow metal fell from $1,220 and bottomed at $1,213.10, the lowest level since November 16. Price stands near the lows under pressure. The move to the downside gained speed after the price dropped under the key short-term support located around $1,220 that capped the slide during the previous days. The outlook from a technical perspective favors the downside.

The DXY reached the highest level in ten days at 97.38 and now stands at the highs, with the bullish tone intact. The greenback also trimmed losses versus commodity currencies.

XAU/USD Levels to watch

To the downside, below daily lows support levels are seen at $1,211, $1,207 and the $1,200 zone. On the upside, now $1,220 is the immediate resistance followed by $1,225 and $1,235.

FXstreet