Gold prices lost 0.46% on the day on Tuesday erasing most of the gains made from the day before. Price action, however, remains a bit volatile. The declines came as the market sentiment was seen showing a modest improvement following the initial panic after fears of a recession saw investors fleeing to safe haven assets.
XAUUSD Reverses at Resistance as Expected, so What’s Next?
Gold prices reversed direction after hitting the resistance level of the 1320 – 1321 region. The declines saw prices posting a modest rebound off the lows marking a lower high as a result. The local low formed at 1318.86 needs to be breached in order for gold to continue the declines lower. The support level at 1306 remains the next main target to the downside.
