A rally in the US dollar and slump in prices across commodity markets on Monday has put spot gold (XAU/USD) prices firmly on the back foot to start the week. Indeed, spot prices recently slipped under the $1900 level for the first time since 29 March, and, at current levels around $1895, are eyeing a test of last month's lows at $1890.
Traders are citing concerns about widening lockdowns in China as the major driver of the recent downturn energy and industrial metal prices, and this is resulting in a pairing back in inflation expectations, weighing on precious metals. Meanwhile, risk-off flows and weakness in the yuan are boosting the buck, raising the cost of USD-denominated gold for foreign buyers.
