The precious metal extended declines for a third consecutive session with the declines gaining momentum. Gold prices lost close to $18 on Thursday. The declines came amid the general risk appetite turning positive after the initial concerns of a recession that plagued the markets earlier this week. US and China trade talks also contributed to the sentiment as investors shed safe-haven assets.
Can XAUUSD Hold the Support?
The drop in gold prices sent the precious metal to test the support area of 1290.37 – 1284.65. A break down below the support could trigger the descending triangle pattern and could see gold prices posting further lows. For the moment, we expect the support to hold out in the short term but the bias to the downside increases.
