Gold Price News: Gold Stabilises After Monday’s Losses

Gold prices were largely unchanged on Tuesday as the market stabilised after sustaining moderate losses on Monday.

Prices moved in a range of $2,658 to $2,677 an ounce on Tuesday, after falling from as high as $2,694 an ounce in early trading on Monday.

Gold in wait-and-see mode ahead of fresh signals

The price action on Monday was characteristic of a market awaiting fresh momentum. Gold’s slight pullback at the start of the week comes in the context of a one-month high of $2,699 an ounce seen on January 10^th.

Technical analysis

The technical charts also help explain gold’s lacklustre performance so far this week. Prices seemingly struggled to break above oblique major resistance at $2,683 an ounce last week, casting a slightly bearish tone to the market. The 10-day Relative Strength Index is not showing any particular direction at 58.7, while prices are currently a short distance above the 20-day moving average at $2,638 an ounce and the 50-day moving average at $2,646 an ounce. Should prices fall further, oblique minor support may come into focus at $2,611 an ounce.

Upcoming data

Looking ahead, eyes will be on the Euro Area industrial production figures on Wednesday for a pulse-check on the EU economy, followed by the US monthly inflation figures for December as the markets try to assess the prospects for upcoming monetary policy changes. Thursday will bring UK GDP figures for November, followed by December US retail sales figures.