Breaking: Gold plunges to fresh 2022-low below $1,770

Gold came under heavy selling pressure in the second half of the day on Tuesday and touched its lowest level since late 2021 below $1,770.

The precious metal is having a difficult time finding demand despite the risk-averse market environment. The dollar seems to be capitalizing on safe-haven flows with the US Dollar Index trading at its strongest level in nearly two decades above 106.50.

In the meantime, the S&P 500 Index is down nearly 2% following the three-day weekend in the US. Investors continue to stay away from risk-sensitive assets amid growing recession fears and the Federal Reserve's willingness to continue to tighten its policy at an aggressive pace.

There won't be any high-impact data releases in the remainder of the day and XAU/USD remains at the mercy of the dollar's valuation.

 The fact that the bearish momentum picked up pace after gold broke below $1,800 also suggests that the yellow metal is facing technical selling pressure as well. 

On Wednesday, the Federal Reserve will release the minutes of its June meeting. The US Bureau of Labor Statistics' jobs report for June will also be watched closely by market participants later in the week.

Gold 15-minute chart