Gold posted declines on Wednesday as the precious metal fell by over 1% on the day. This came right after prices tested a new six-year high. The declines came despite the economic data from the US showing a weak durable goods orders report. Headline durable goods orders fell 1.3% on the month in May while core durable goods orders managed to rise 0.3%.
Will XAUUSD Correct Lower?
The precious metal is testing the initial support at 1404.30. With the Stochastics oscillator in the oversold levels, there is scope for price to rebound to the upside. However, failure to post higher highs could signal short term weakness in price. This will eventually see gold prices easing back to the 1404.30 level. A break down below this support will push gold prices lower to the 1350 handle.
