Gold continues to sell off as the dollar rallies

• Gold has smashed through the USD 1500 psychological level today.
• Now the precious metal is heading toward the next support of USD 1480.

Gold has lost around 1.50% of its value today as it seems investors are positioning away from safe havens.

The US 10 year yield is also climbing along with USD/JPY as risk assets become more favourable. Stocks are also higher in general over the EU and US sessions.

The reason for this shift in sentiment is stronger than expected PMI's and a softer tone from the US and China regarding their trade spat.

It was reported that the US and China may make concessions to get the phase one trade deal over the line.

Looking at the 4-hour chart below, gold has taken a battering on the last candle.

There are now two support levels in focus one is the USD 1480 support zone and the other is the trendline support level.

This area between USD 1520 and 1475 per ounce has been a big consolidation zone and any move outside would be considered important.