The precious metal logged gains on Tuesday after the ISM report on manufacturing. With the trade war being blamed for the decline in global manufacturing, investors piled into safe-haven assets. Gold prices retested the level of 1543 as US equities fell, reflecting the market sentiment.
Can XAU/USD Breakout to New Highs?
The current gains look to be coming in with weak momentum. Unless there is a strong close above the 1543 handle, XAUUSD is likely to remain flat in the near term. A convincing close above 1543 is required to establish further highs. We expect XAUUSD to remain trading flat or close to the current highs. The lower support at 1518 could likely stall the declines.