The precious metal was looking bullish on Wednesday, fueled by the uncertainty due to the US and China trade wars. However, after gold prices rose to touch a three-week high, prices retreated sharply into Wednesday’s close. The pullback came after President Trump’s recent tweets on China.
Gold Settles Back into the Range
XAUUSD tested the highs of 1290, a resistance level that was well within sight. However, the pullback from this level has sent gold prices back to trade within the range of 1285 and 1273. A bearish follow-through is required from here in order for gold prices to extend declines lower. In the near term, any rallies to the 1285 level could likely be met by more selling. Watch for a break below 1273 for gold to continue its descent.
