Gold has pushed above the $4,000 threshold on Tuesday with a modest 0.35% gain, but the yellow metal remains on track for its worst monthly performance in recent memory with losses exceeding 11% for the period. The precious metal tumbled from monthly peaks near $4,500 as renewed US Dollar strength pressured the XAU/USD pair throughout the session.
The sharp monthly decline represents a significant reversal for gold investors who had seen prices surge earlier in the period. The greenback’s resurgence across currency markets has eliminated safe-haven demand for bullion, with traders rotating out of the traditional store of value. Despite Tuesday’s intraday bounce, the technical picture remains bearish as gold struggles to hold psychological support at current levels.
Brokers and market makers should expect continued volatility in precious metals as the month closes, with institutional positioning likely to drive price action in the final trading sessions.
FXnCO Insight
Gold’s failure to hold above $4,000 sustainably signals further downside risk, making defensive positioning and tight stop-losses critical for any long exposure in XAU/USD.
Source: FXStreet