Gold prices were down 0.45% on the day on Tuesday. This follows the general market sentiment which remains cautious amid various narratives including the US and Iran tensions and the trade war with China which has now escalated into a tech war. The beleaguered Chinese firm Huawei has filed a legal action in a bid to end the current standoff.
XAUUSD Approaches the 200-day EMA
The declines in gold prices on Tuesday saw the precious metal once again falling back to the 200-day EMA. The moving average has offered dynamic support on previous occasions. If it manages to hold the declines in gold once again, then we expect the sideways range to continue. However, watch for a possible decline in 1270 handle which could push gold prices down to the 1240 – 1250 level as the bearish trend gains momentum.
