Gold prices fell on Tuesday, hitting a low not seen since March 17 during the early European session. XAU/USD is currently positioned slightly below $1,940, down around 0.25% on the day.
The bears are waiting for a decline to be accepted and sustained below the 100-day Simple Moving Average (SMA) before placing new bets. Several Federal Reserve officials have made hawkish comments that lead to the possibility of another 25 bps increase in June.
This has led the market to expect that the Fed will keep interest rates higher for longer, which has strengthened the dollar and put additional pressure on non-yielding Gold prices.