The US dollar rose 0.30% against the Euro on Tuesday as investors bet that monetary policies in the United States and the monetary union would continue to diverge. A stronger greenback puts pressure on dollar-denominated commodities as they become more expensive for investors using other currencies. Underpinning the short-term bearish sentiment, holdings in SPDR Gold Trust, the world's largest gold-backed ETF, decreased -0.14% to 844.27 tonnes on Tuesday.
XAUUSD finished the previous session at $1275.20 per troy ounce before rebounding overnight. A look at the daily price chart of gold reveals the intermediate-term trend in the metal is down, with prices stuck within a horizontal range stretching from $1260-$1280. Selling pressure could accelerate on a dip below $1270 per ounce, which coincides with the last major pivot low on the 4-hour chart.