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Gold at multi-year lows, 1180 support under threat

FXStreet (Moscow) - Gold is trading at 1185 with strong bearish bias. Price rushed lower and touched new minimum at 1183 during late Tokyo hours. Major support at 1180 is under threat. This area has capped the downside four times since mid-2013, and a sustained break below would bring us in an uncharted territory.

While Swiss Gold Referendum that would prevent SNB from selling gold and force it to maintain 20% of its foreign reserves in the metal might support the yellow metal, there are some other influential factors to consider. USD is growing steadily across the board on the back of somewhat less dovish FED and more dovish ECB and BOJ. This weights of Gold that is negatively correlated to the American currency. Apart from that Bearish gold story is supported by improved risk sentiments, though this is not a reliable factor as markets are ill-famed for their fast-changing sentiments.

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