The price of gold declined further on Tuesday and the bullion was down 0.50% during the London session, trading around 1,260 USD an ounce, which are levels last seen in the middle of December 2017.
The US dollar weakened on Moinday but the bullion failed to appreciate. Also, the trade war between China and USA is intensifying which led to a sharp sell-off on the stock markets worldwide, but once again, gold did not move at all and stayed under pressure.
Later in the day, the US consumer confidence gauge for June is due and should slow down only very marginally to 127.6 from 128.0. Consumers are not worried by trade wars and remain confident, which could lead to strong spending numbers in the days ahead.
Gold dropped below another key support around 1,262 USD, which confirmed the bearish momentum. The decline continues despite oversold conditions, targeting the important 1,250 USD level.
On the upside, as long as the price remains capped by 1,265 USD level, the outlook seems bearish. If this resistance falls, further rise to yesterday’s highs near 1,273 USD could occur. In all cases we strongly recommend to have rigorous money and risk management.
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