Gold prices were seen trading lower as investor’s risk appetite returned. The prospects of a possible rate cut by the Fed sometime this year led equity markets higher. At the same time, lack of any new developments from the US and China trade talks also helped sentiment. With the US now pulling back on its trade threats to Mexico, the global uncertainty is seen to be somewhat stable.
XAUUSD on Track to Test the Support
The precious metal was seen giving up most of the gains on Monday. Price gapped lower on the open and continued to extend declines through the day. This puts price action in gold within reach to test the 1320 level of support. Establishing support at this level could however keep the medium-term bias to the upside. A close below 1320 could, however, spell further declines that could see gold testing the lower support at 1290–1285.
