The precious metal was trading flat near six-year highs on Wednesday. Improving investor sentiment saw the safe-haven staying muted. The positive reaction came amid receding tensions in Hong Kong. But the China and US trade narrative still remains in the background. However, the lack of new remarks or policies from either side gave room for investors to take on more risk.
XAU/USD Likely to Hold Out Near Current Highs
Price action in XAU/USD could remain in a holding pattern ahead of key economic releases today. The ADP private payrolls report is due and could be a precursor to Friday’s jobs report. The fact that gold prices are trading near 1544 level indicates that this could turn into resistance in the short term.