The Prayed came under heavy selling pressure in the second half of trading on Tuesday and hit its lowest level since late 2021 below $1,770.
The precious metal is having a hard time finding demand despite the risk-averse market environment. The dollar appears to be taking advantage of safe haven flows with the US Dollar Index trading at its strongest level in almost two decades above 106.50.
Meanwhile, the S&P 500 index is down almost 2% after the three-day weekend in the US. Investors continue to steer clear of risk-sensitive assets amid growing recession fears and the Fed’s willingness Federal to continue to tighten its policy at an aggressive pace.
No big impact data will be released for the rest of the day and XAU/USD remains at the mercy of the dollar’s valuation.
The fact that bearish momentum has accelerated after gold broke below $1,800 also suggests that the yellow metal is facing technical selling pressure.
On Wednesday, the Federal Reserve will publish the minutes of its June meeting. Market participants will also closely monitor the US Bureau of Labor Statistics’ employment report for June.
15 minute gold chart
Source: Fx Street
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