The precious yellow metal remains highly volatile after the yesterday’s session staged a firm advance and briefly inked in an intraday high of $1,545 before the market staged a course correction and plummeted to an intraday low of $1,472, which followed by a modest bounce.
From a technical perspective, it is assessed gold prices may continue to face bearish pressure in the short-term as reports indicate some investors still need to raise cash as the so-called risk assets tumble.
Other supportive factors of spot golds weakness include the recent surge to the U.S. Dollar as it rallies to a fresh 3-year high of 102.02 to the index.
Looking ahead, the intraday outlook remains neutral due to the high volatility and extended swings we are currently experiencing.
However, the overnight’s retreat from the $1,545-55 resistance now questions to how spot gold will perform as we could soon see another down challenge to the bullish foundations of $1,450-60.
Still note, due to the given high volatility, trading will continue to come at a “high risk” given to the uncertainty of the market conditions and therefore will expect these massive swings in gold price movement to continue.