Gold prices fell in U.S. trading on Tuesday, erasing earlier gains, as a rebound in stock markets put pressure on the metal. U.S. stock indexes were higher in afternoon action and the greenback recovered some of its recent losses.
XAU/USD headed back towards the 1312 level following the rejection of the resistance area I pointed out in 1327.50-1324. It seems that the market will eventually test the support at 1312 today. If the bears win this fight, we may a visit to 1304 afterwards.
To the upside, keep an eye on the intra-day resistance in the 1320/18 region. The bull will have to lift prices back above there so that they have can another chance to challenge 1327.50-1324. A break through there beings in 1337.16.
