The precious metal gapped higher on Monday following strong rhetoric from President Trump. However, the precious metal gave up the gains rather quickly after Trump took a softer stance on China. Furthermore, the better than expected durable goods orders report also helped gold prices settle lower on the day.
XAU/USD Likely to Retest the Breakout Level
Following the gains on Monday, the precious metal has been trending lower. We expect this current retracement to stall near the breakout level. The previously established resistance level at 1508 remains key to the downside. XAUUSD is likely to test this level in the near term. A rebound off this level will potentially keep the upside momentum intact in gold.
