Gold drops to lowest in almost two weeks, near $1710
Gold prices extended losses after the beginning of the American session and bottomed at $1709/oz, the lowest level since May 13. It is hovering around $1712, down $15 for the day so far.
The decline took place as equity prices rally in Wall Street. The Dow Jones gains 2.35% while European markets posted gains of 1.65% on average. The surprise regarding gold’s performance is related to the US dollar. The greenback is falling sharply across the board, and it is even losing ground versus the Japanese yen. Usually, XAU/USD benefits from a weaker dollar, but it is not the case on Tuesday.
Gold Price Analysis: 4-hour bull flag pattern is holding as the price moves lower toward $1700
Gold has pulled back on Tuesday as the risk theme turns positive and equities rise. The US dollar has weakened significantly over the session but this has not helped the yellow metal recover from trading near session lows of USD 1708.80 per troy ounce.
Looking at the chart patterns in black you can see the bull flag pattern is still intact. As the price is at the lower end of the pattern any breach would invalidate the structure and surely mean the prices could be heading lower. The blue internal trendline has already been taken out but the losses seem to have been stemmed by the 200 simple moving average (SMA).
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