The precious metal closed another week, with solid gains as the precious metal settled near fresh six-year highs, testing 1500 an ounce. The gains in gold came on the back of renewed trade issues. While equities attempted to recover, they closed on a softer note. The rally in gold depicts investor sentiment rushing to safe-haven assets.
XAU/USD Forming a Topping Pattern
The precious metal is seen consolidating near the highs at the 1500 level. The recent dip and a rally back to this level confirm the view of consolidation. Failure to post higher highs could see gold trading flat. The minor resistance is formed at 1494.80. A break down of this level will confirm a correction that is due. The lower support is in the 1431-1428 region. To the upside, a rebound off the 1494.80 minor support needs to be followed up by higher highs.
