The precious metal initially rose to an intraday high of 1285 before erasing the gains to close the day flat. The flat price action indicates the mixed sentiment in the market. The trade war with China has reached an impasse despite some hopes that a deal could be made. Meanwhile, Chinese media published dire warnings of retaliation to the US-led measures.
XAUUSD on Track to Test the Lower End of the Range
Gold prices posted a reversal after testing the 1285 handle. Price action managed to briefly retrace the initial losses only to fail at the resistance level once again. This led to price pushing lower as a result. Following a successful close below 1277.50, we anticipate the precious metal to fall further in the near term. The lower range at 1270 is likely to be tested by price.
