Increased tensions in the Middle East and trade war escalations are likely to keep market participants closer to safe-haven assets. With chances of a September rate cut increasing and central banks looking to accommodate as much as needed. Gold is likely to extend its up move in the coming days, and perhaps even for the medium term.
XAUUSD Could Retrace A Tad Lower
The price extension to 1460 this morning really shows off this week’s market sentiment. Following a breakout above last month’s high at 1453, investors now eye the 1475 level, reached in April 2013. With a retracement expected to weigh on the exchange rate, a short-term decline can be expected from intraday flows, but nothing that could change the longer-term outlook.
