Gold prices were seen trading flat on Wednesday as the tensions between the US and China eased. Treasury Secretary, Mnuchin, said that both nations would resume talks. He also said that an understanding with Mexico and Canada to resolve the steel and aluminum tariffs was also close. Tariffs on automobiles were also deferred by up to six months.
Can Gold Regain the Momentum?
The decline in global tensions is likely to see gold prices turning flat. The new range of 1300 and 1285 is likely to be tested in the near term. Gold prices briefly rallied to intraday highs of 1300 before easing back. We expect the downside momentum could push the precious metal to test the 1285 support in the near term. But for the moment, the upside gains look to be capped.
