The precious metal is trading on the backfoot on Thursday. The declines came as gold gave a muted response to the China trade deal. The stronger USD managed to put some pressure on the precious metal. However, gold prices are staying resilient despite a broad build-up in risk appetite.
Will XAU/USD Decline Further?
Although the bias remains to the downside, XAUUSD is staying somewhat stronger. The hidden bearish divergence remains in play for the moment. But if prices continue to drift, we could expect the upside bias to build up. For the moment, the downside target remains at the support level of 1534.00. But a breakout above 1558 will, of course, change the view.