Gold dropped sharply on Tuesday as the uptick in the Treasury yields pushed up the Dollar index. The greenback remains the focal point as US wage growth is expected to print higher this Friday, something that could trigger an economic overheating which will most probably result in further rate hikes.
Gold continues to loose momentum as the price is trading below the $1193 resistance level. A simple consolidation now is easing the oversold conditions, an indication that the downward move will be set to extend with the $1188 level in focus.
Support: 1198.6 1197.75
Resistance: 1207.8 1214.15