The precious metal continued to fall, extending declines to four consecutive sessions. The precious metal is losing ground amid investor sentiment improving. Furthermore, the strong gains logged by gold previously are also due for a correction. A lack of key fundamentals over the past few days has kept price action subdued. However, with US economic data on tap later in the week as well as the ECB meeting, we expect to see some volatility in the precious metal.
XAU/USD consolidates near lower support
The precious metal is consolidating near the lower support area of 1485. Price action remains somewhat muted near this level. With gold breaking past the initial support at 1508, we expect the sideways range to continue into Thursday’s ECB announcement on monetary policy.