The precious metal closed on Friday in the red marking three consecutive weekly declines. The bearish pullback to the strong rally comes ahead of the key monetary policy decision from the Federal Reserve and many other central banks. Easing trade tensions between the US and China also contributed to the risk-on sentiment.
Will XAU/USD Break the Support?
Price action in XAUUSD has been concentrated within the range of 1508 and 1485. Failure to breakout higher has kept price subdued. Therefore, there is a good chance that gold could continue its descent. The lower support at 1431–1428 therefore, cannot be ruled out. A retest of this level to establish support will mark the completion of the longer-term correction in the precious metal.