The macro backdrop looked set to become increasingly negative for gold , particularly in light of the strength of the dollar and US 10y Treasuries rising to six-week highs.

As Barclays highlighted previously, given the magnitude of the decline in the EUR/USD, they would have expected gold to be subject to further downside risk. Although gold has suffered additional downside risk in recent sessions, prices are likely to bear a greater burden given the easing of geopolitical tensions.