The troy ounce of the precious metal extended its losses after breaking below the critical $1500 level and touched its lowest level in nearly a month at $1484.39 per ounce. Easing concerns over a slowdown in the global economic growth amid hopes of major economies' central banks introducing more stimulus allowed risk-on flows to dominate the market action since the second half of the previous week and weighed on the precious metal, which gained more than $200 in the last two months.
Gold prices remained under pressure during yesterday’s session and dropped to their lowest level in a month to print $1484.39 per ounce. The price is currently trading above the $1483.45 support level with the momentum slightly touching the oversold zone. We will be focusing further on the downside with the $1474.99 support level on our watch, however, traders should keep an eye on a potential divergence between the price and the momentum which could send the price back up.
Support: 1483.45/ 1474.99
Resistance: 1594.36 / 1506.02