Gold Prices Threatened by UK Inflation Spike: Will Bearish Momentum Prevail?

Gold prices came under some pressure on Tuesday, taking the prices back to the lower end of its recent range and even threatening to break below in what could have been a bearish development for the yellow metal.
Gold has broadly traded between $1,940-$1,980 over the last month, very briefly moving outside of this range on a few occasions and the lower boundary is being tested once again this morning. It actually fell below $1,930 yesterday and nearly did the same again this morning so traders will be on high alert for a more substantial breakout to the downside.
Higher yields could be the catalyst for that depending on how traders more broadly respond to this morning’s disappointing UK inflation data. Is it a sign of a deeper problem in the global fight against inflation or just UK-specific? The dip after the release suggests the concerns around the former.