Gold Slumps As Markets And Dollar Rally

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Gold futures were trading lower by $11.70 at $1109.30 in Wednesday's session. The stronger dollar and rally in the broad market has investors dumping gold as fear in the markets has subsided. Rallies in Asian markets have been a factor in the sell-off.

After a flat open, it rallied but found resistance ahead of Tuesday's high ($1126), only reaching $1124.70 before reversing course. Once the support at the $1115 level was breached, the selling intensified.

So far, it has reached $1108.30 and is not far from that level. The current low coincides with its low from August 18 ($1108.50). If the decline continues, the next identifiable support level may not come in until its August 12 low ($1101.10).