The precious metal managed to post strong gains on Thursday. The gains came following the announcement of the new tariffs from the Washington administration. China could possibly retaliate once again with its own tariffs on US goods. Gold rallied to highs of 1449 before reversing the gains promptly.
XAUUSD Likely to Consolidate Again
The rebound in gold prices sent the precious metal to test previous highs from mid-June. However, the reversal off the highs has pushed gold back to the support area of 1431–1428 levels. We could expect to see prices holding on to this support in the near term. But a break down below the support will accelerate the declines. The previous support of 1404 remains the key target to the downside.
