Technicals Pointing Lower

Spot deals little changed around the $1,762/oz mark at typing. To recap, gold breached technical support located at the Jun 18 low ($1,761.1/oz) on Tuesday, with the DXY trading on the front foot, although the level was not breached on a closing basis after a retrace from session lows of $1,750.8/oz. Technically, the break below the aforementioned support level confirmed a resumption of the downtrend that started on Jun 1, on the confirmation of the bear flag that developed during the most recent consolidation phase. This now opens the way to $1,733.5/oz, a Fibonacci retracement level. On the upside, initial resistance has been defined at the Jun 23 high ($1,795.00/oz). There was a lack of net movement in our weighted U.S. real yield measure on Tuesday, with that particular metric consolidating in recent sessions.