Gold completes 4 weeks to the downside

Gold is about to close another week to the downside as the Dollar continues to strengthen. Due to the fact that the precious metal is quoted in Dollars, when the Greenback rallies this causes the demand for gold to go down in the international markets and that is why these two instruments keep a negative correlation. After making a low around the 1131 level, gold may continue dropping and it doesn’t seem to have any more relevant supports until the 1041 level as we can see it on the weekly chart. On this same chart we can see that the 55 exponential moving average (purple line) continues separating from the 200 exponential moving average (blue line), showing us that the commodity may try to continue going lower on the long run.