Gold Price Analysis: XAU/USD to set the stage for further losses on a break below $1700

Gold added to the previous day's losses and lost some additional ground for the second consecutive session on Tuesday. XAU/USD is back closer to the $1700 mark and the next relevant target for XAU/USD bears is $1677-76, FXStreet’s Haresh Menghani briefs.

See – Gold Price Analysis: XAU/USD to remain under pressure amid rising US real yields and a strengthening USD – Credit Suisse

Key quotes

“Market participants now look forward to the US economic docket, highlighting the release of the Conference Board's Consumer Confidence Index. The data might influence the USD price dynamics and provide some impetus to the metal. Traders will further take cues from the US bond yields and the broader market risk sentiment. The key focus, however, will remain on Friday's release of the closely-watched US monthly jobs report (NFP).”

“Some follow-through selling below the $1700 mark will reaffirm the negative outlook and turn the yellow metal vulnerable to accelerate the fall back towards challenging multi-month lows, around the $1677-76 region touched earlier this month.”

“The trading range support breakpoint, around the $1720 region, now seems to act as immediate strong resistance. Any further recovery move will now be seen as a selling opportunity and remain capped near the $1732-33 supply zone. That said, a sustained move beyond might trigger a short-covering move and push the metal back towards challenging the $1745-47 strong horizontal resistance.”