Gold (XAU/USD) remains under heavy selling pressure so far this Tuesday’s trading, as a four-day losing streak extends amid relentless demand for the US dollar across its main competitors. The yellow metal is at a critical juncture as FXStreet’s Dhwani Mehta notes.
See – Gold Price Analysis: XAU/USD’s outlook supported by higher inflation and a weaker USD – ANZ
“The price of gold will remain at the mercy of the US dollar dynamics while the price action in the US Treasury yields will be also closely followed amid a lack of relevant US economic data. Markets could also resort to profit-taking after the recent sell-off.”
“Gold’s 4-hour chart shows that the price is on the verge of confirming a falling channel breakdown if it closes the candle below the trendline support at $1712. Should the pattern get validated, a drop towards the June 2020 lows at $1671 cannot be ruled out.”
“If the XAU bulls manage to defend the critical support, a rebound towards the bearish 21-simple moving average (SMA) at $1755 could be in the offing.”