The precious metal was trading subdued a day after it fell sharply. The decline in gold prices came as investor sentiment improved.
The investing community has largely brushed aside the threat of the US house opening an impeachment inquiry into President Trump. Meanwhile, Trump talking up the China trade deal also raised prospects that there would be some progress on the trade talks.
XAU/USD Holds the Support Line
The precious metal extended declines after forming a lower high than we were anticipating. However, the declines stalled near the support line of 1508. With the Stochastics oscillator currently oversold, the near-term momentum points to the upside.
However, it is unlikely to expect more gains if the upside momentum falls short of pushing gold prices above the recent highs of 1531.
