The precious metal pared losses on Thursday as it gained 0.67%, erasing the losses from earlier in the week. The rather volatile move in gold prices reflects the global uncertainty especially in regard to trade. The bond markets once again flashed a red signal with the 3/10-year spread falling to 11.9bps. This led to investors seeking the security of safe haven assets.
Gold Prices Could Extend Gains for the 2nd Week
XAUUSD is on track to potentially extend gains for the second consecutive week. Price action remains flat overall. Following the brief decline lower, gold recovered sharply on Thursday as it broke past the 1285 resistance once again. This potentially shifts the bias to the upside. However, given the current uncertainty in the markets, we expect to see a bit more volatility in the precious metal.
