Gold Price News and Forecast: XAU/USD is trading 0.45% lower on Tuesday despite some bearishness in equities

Gold Price Analysis: The 1-hour chart points to a deeper correction

After a slow start to the week, there has been some choppy price action in equities. During the EU session the DAX and FTSE traded higher but as soon as the US session opened the major bourses hit the floor and the Dow trades around 1.68% in the red. This is despite the news that more economies give us more clues about opening up their shops and schools. However, White House economic advisor Kevin Hassett commented that the US unemployment rate could hit between 16- 20% by the end of June.

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Gold: The outlook for the yellow metal is deteriorating [Video]

With a second close lower in the past two sessions, already threatening to turn into a third today, the outlook for gold is deteriorating. We have been talking about the near term importance of the pivot at $1702 and the support of this pivot has been decisively broken today. With this coming as momentum indicators are starting to deteriorate, we must turn at least cautious of the outlook for now. With RSI and Stochastics ticking lower, MACD lines are crossing lower. This at least suggests our bullish outlook is on hold for now. In recent weeks, the old March high at $1702 has become a gauge for the near term outlook.

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