While there were signs of a recovery following the sell-off in the equity markets, gold prices were steady. The precious metal tested 1500 marking a fresh six-year high in the commodity. However, at the moment, the gains look to be overstretched. With the US and China trade war narrative currently fading, focus could once again shift to the economic data.
Gold Prices Could Pull Back off the 1500 Handle
The gains in the precious metal are likely to see a modest pullback in the near term. However, the bias remains to the upside. The support level is seen at 1445–1452 region which could be tested in the near term. Establishing support at this level will keep gold poised to make further gains. However, the 1500 handle could prove to be elusive to break past.
