With equities falling, investors were seen slowly piling into safe-haven assets. Gold prices rose modestly on the day on Tuesday as doubts emerge on whether the US will be able to reach a deal with China. However, in the short term, the current gains could be limited in the backdrop of key economic data from the US over the remainder of the week.
XAUUSD on Track to Test Resistance
The rebound in XAUUSD will see price gradually drifting to the next main resistance level of the 1483 region. Further gains can be expected if the precious metal breaks out above this level. In the short term, momentum is currently overbought which could indicate a short term consolidation or a pullback to the current short term rally.
