The precious metal continued to rise, marking a third consecutive day of gains. Investors bid up gold prices higher amid a fresh onslaught of global uncertainty.
The US hit the EU with tariffs of $7.5 billion which includes cheese, wine, and leather goods. EU officials warned that they would hit back with tit-for-tat tariffs on US goods. The uncertainty saw a heightened risk aversion as equities fell for the third day.
XAUUSD Fails to Clear Resistance
The precious metal has failed to clear the upper end of the resistance level at 1508. Price briefly spiked higher but retreated towards the close. Unless XAUUSD clears this level, we expect the upside to be capped. The downside bias for a correction to 1431 will be back in the spotlight. The hidden bearish divergence is another signal of a possible downside bias.
