The precious metal made some modest gains on Monday. This came despite a lack of any economic data. The market sentiment overall remains cautious due to the coronavirus outbreak.
With Japan’s GDP contracting in the fourth quarter, there are fears that the economy will not recover in the first three months of the year.
XAU/USD Could Continue the Bullish Trend
Following the strong recovery from last week, the precious metal is taking a breather. While price action nears the previous highs, there is scope for gold to reach new highs.
This comes amid a bullish flag pattern emerging near the current highs. The upside target is at 1600, followed by 1640.
