The precious metal pared losses as the USD turned weaker. Gold prices jumped on Tuesday following the weak ISM manufacturing data.
The report could potentially stir up speculation for another rate cut from the Fed. Investors will be looking to this Friday’s payrolls report which could be a major market-moving event.
XAU/USD Retesting 1485 for Resistance
The rebound in the precious metal has sent gold prices to retest the breached support level of 1485 for resistance. If price fails to breakout any higher, we could expect the downside to prevail.
The lower support area at 1431 – 1428 remains the downside target. However, if the USD weakness continues, there is scope for gold prices to extend the bounce higher, invalidating the downside bias.
