Gold (XAU/USD) extended its downward correction on Thursday, touching a new low of $3,851. The move follows a bearish continuation signal triggered below the $3,870 level established two weeks prior, confirming that sellers have regained control of the market.
The downward pressure on precious metals correlates with a sharp upside breakout in the U.S. dollar index (DXY), which has strengthened and made gold more expensive for international buyers. Technical indicators suggest further potential declines, particularly with gold on track to complete a bearish weekly engulfing pattern if the current session closes below the previous week's low of $3,775.
