Gold Price Analysis: XAU/USD slips below $1,700 amid a quiet session
Gold prices drop to $1,698, intraday low of $1,696.34, during the initial Asian session on Tuesday. The yellow metal bounced off the five-week low the previous day amid broad US dollar weakness. Though, the recent consolidation in the global markets seems to probe the precious metal’s recovery moves.
On Monday, global markets portrayed heavy risk-on sentiment while extending late-Friday optimism backed by the US employment data. The upbeat mood was also supported by weekend trade numbers from China as well as receding protests in the US.
Gold Price Analysis: XAU/USD meets critical resistance, $1,700, bears waiting to pounce
Gold has reached a fresh high for the US session in its correction within a series of bearish impulses. At the start of the week, the bearish case for gold was as a result of the following analysis: Chart of The Week: Gold bears burst into the barroom-brawl zone.
The price of gold had continued within the bearish trajectory in the open highlighted in last week's analysis here: Gold Price Analysis: XAU/USD bearish case for the contrarians out there.
However, a correction of the last daily bearish impulse was expected to reach 1700 as a golden Fibonacci retracement, the 61.8%. This has indeed played out today.
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