Gold internmarket: DXY driving the price lower ahead of BoJ and FOMC

Gold has been sent lower by a steep rise in DXY in the US session.

US dollar index bounces and ends day higher

From the lowest level since August 26 at 94.40,  the dollar rallied to break Wednesday’s highs to 95.08 and now up 0.09% for the US session. This has lead to gold to drop for another day from $1,352 yesterday and $1,349 today, meeting lows of $1,335 so far.

ECB: further rate cuts on the cards? - Nomura

The European Central Bank held on all today, but has left the door open for further easing ahead which could ultimately support gold in the longer run and we also have the BoJ that is in play this month. USD/JPY could also have an impact on the gold price, sending it higher on a stronger yen should the BoJ hold off. The DXY will be a driver again when the FOMC meet and sentiment is for the Fed to hold until after the US election, potentially adding downside pressures to the greenback. the levels to watch for in DXY are 95.00 and 94.80 to the downside, while USD/JPY holds a key support at 100.00 and gold;'s recent highs are at $1,375.