After rising more than 1.75% during the first three days of the week, the Dollar Index gave up some of those gains during early Thursday trading. Political partisanship in Washington, exacerbated by a bitter dispute over the intended ‘midnight appointment’ of a Supreme Court judge by President Trump, continues to block fiscal stimulus.
Against this backdrop the Fed Chairman stated during a congressional hearing the need for more stimulus measures as the country’s economy continues to wane, which resulted in investors halting their recent rush to the greenback.
Gold price has fallen to its lowest level since late July, while greenback continues to recover with the Dollar Index reaching 94.5. Technically, an important point has now been reached with the break-down dragging the price down to the low point of August. This represents a bearish signal, as the price plummeted to $1,850, well below the support zone of $1,860, while the general market volatility rebounded.