The precious metal remains volatile, trading near the recent highs. Price action is reflecting the current market volatility due to the coronavirus. The G7 failed to give any commitments to stimulus.
Furthermore, the surprise Fed rate cut has also added to the volatility in the precious metal.
XAU/USD Pares Losses
Gold prices are reversing the gains following the Fed’s surprise rate cut. Price action is back near the 1632 level. We expect this level to turn to resistance if there is no follow-through to the upside.
However, there is also a risk of price action trading rather flat within 1655 and 1631 levels.
