The precious metal resumed the declines on Tuesday amid an improving risk appetite in the markets. Gold prices eased to a four-month low as the USD bounced back and the equity markets closed near record highs. Spot gold fell 0.1% on the day to hit the lowest levels of $1266 before pulling back.
What’s Next for XAUUSD?
With the precious metal failing to capitalize earlier on its consolidation above 1273, the declines mark further downside. The 200-day EMA has failed to keep a floor on the declines leading to the intraday losses. The next main target for XAUUSD comes in at the 1240 – 1250 handle. This level is very likely to provide support to the downtrend. In the near term, any rebound in prices could still see a move to the 1285 support which can be tested for resistance.
