XAU/USD Outlook: Spot Gold Falls to 4 1/2 Month Low, Pressured by Strong Risk Mode

Technical analysis of Forex market

Spot gold holds in red for the fourth straight day and accelerates lower in early US trading on Tuesday. Fresh weakness hit new 4 1/2 month low, marking daily loss of 0.93% until now. Solid economic data from major economies and fresh optimism over US/China trade talks boosted risk sentiment, reducing significantly safe-haven demand. Fresh bears cracked important supports at $1276/75 (21/23 Jan higher base/Fibo 38.2% of $1160/$1346) and close below would generate bearish signal for extension steep fall from $1309 lower top towards $1263 (weekly cloud top). Daily techs are in full bearish setup and maintain strong negative momentum which boosts bears. Oversold stochastic marks initial warning of corrective action that could be expected in coming session.

Res: 1276; 1280; 1287; 1292
Sup: 1274; 1263; 1256; 1253

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