The precious metal was trending lower on Monday on the news about the US-China trade talks. The declines in the precious metal come amid renewed risk-off sentiment in the market.
China announced that it would step up its efforts to protect intellectual property rights. This has been one of the key demands from Washington for a deal to be made.
XAU/USD Downside Confirmed Only if Resistance Holds
XAUUSD has been trading volatile and the current bearish momentum points to a decline towards the 1445 level of support. However, unless resistance is tested near 1462, it is unlikely to see more declines.
There is scope for price action to breakout higher. Therefore, the resistance level of 1462 remains key. In the near term, we expect XAUUSD to be range-bound within the 1462 and 1445 levels.
