Gold is at a key support level

Gold has been falling due to strength in the US Dollar and investors are preferring Dollar backed assets. Regularly, gold is used as a safe haven instrument during periods of high risk aversion, but due to the fact that the US markets are feeling optimistic about the US economy, which is showing a steady expansion, gold has lost its attractiveness as a safe haven investment. At the moment the precious metal is at a key support level around the 1182 Dollars per ounce and if the greenback continues being supported by upbeat fundamental data from the US, we could see further drops on gold. If a breakdown of that zone is confirmed, then the bearish momentum may accelerate on the precious metal.