Gold Price Analysis: XAU/USD consolidates losses from 1-½ month low beyond $1,900
Gold retraces from the lowest from August 12 to $1,913 amid the early Asian session on Tuesday. The bullion dropped to the multi-day low as the market’s risk-off tone preferred the US dollar above all, which in turn has an inverse correlation with the safe-haven metal.
The coronavirus (COVID-19) resurgence in Europe and the UK sours the trading sentiment off-late. While local lockdowns have been in fashion in some parts of the bloc and northern Britain, pubs and restaurants in England are to have a closing time of 10:00 PM starting from Tuesday.
Gold Price Analysis: XAU/USD bullish bias starting to fade
Gold prices are testing the bull's commitments at the support structure around $1,906 in what could be a final test before the next leg higher of the bullish trend. At the time of writing, gold, XAU/USD, is trading at the lows of the day, $1,905, having travelled from a high of $1,955.62, down some 2% to start the week.
Gold prices have been in consolidation since correcting from all-time highs in late July and subsequently printing a low of 1861 at the start of August. The price has chopped sideways, decelerating its daily range as markets try to get a handle on the various features of today's market conditions.
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