FxWirePro: Gold heads for larger decline after Trump's victory

After rallying post US election to as high as $1337 per troy ounce the gold price is now down for third consecutive day and the price has declined more than 8 percent from the highs and down about 4 percent in past three days. Today the gold price has declined to lowest level since February this year and currently trading at $1223 per troy ounce.

We have remained bullish on gold from $1090 per troy ounce area with targets around $1525 area. However, the win by Donald Trump has significantly boosted the price of the dollar as the Fed is now expected to tighten faster with Donald Trump unleashing the fiscal stimulus. This strength of the dollar hasn’t bided well for the gold price and we suspect that a further decline might be on the card.

While the gold has a major support level around $1200 area, we suspect the yellow metal to decline as low as $1155 per troy ounce in the near term.