Gold was offered support in the form of a weaker dollar during Tuesday’s trading session with prices trading around $1215 as of writing.
While the precious metal could struggle higher in the near term if the dollar continues to weaken, the medium-to-longer term outlook for gold remains bearish.
It is becoming quite clear that the dollar is starting to outshine gold as a safe-haven asset while expectations of higher U.S. interest rates have translated to further pain for the zero-yielding metal.
With the bearish fundamentals behind the yellow metal’s depreciation well-aligned with the technical, further downside is certainly on the cards.
Focusing on the technical perspective, gold continues to fulfil the prerequisites of a bearish trend on the daily charts as there have been consistently lower lows and lower highs.
Sustained weakness below $1213 could invite a decline towards $1200.
Alternatively, a solid breakout and daily close above $1213 may trigger a rebound towards the $1224 lower high.
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