The precious metal traded mostly muted on Monday, but price action turned bearish towards Monday’s close. Gold prices posted declines falling to a three-week low at the time of writing. The precious metal was down 0.36%, tracking the rising global risk appetite.
Can XAUUSD Break Out Lower from the Support?
XAUUSD is currently trading near the familiar support area of the 1290 – 1284 region. Previously, prices consolidated at this level before correcting to the upside. The 1284 support will be critical in the short term as a break down below this level could trigger sellers in the medium term. This would push gold prices lower to test the 1240 level of support. However, watch out for a potential double bottom pattern that could form at the support.
