Gold prices fell sharply on Thursday amid a stronger dollar demand across the board. The bullion retreated from the $1,310 level and closed below $1,300. By the way, it was the worst day for the precious metal since the beginning of this month.
However, after a sell-off, the bullion resumed the upside move and tries to settle above the $1,300 psychological level despite the generally positive investor sentiment in the global financial markets.
The decline was driven mostly by weak data out of China, stronger dollar and some corrective moves after a two-day rally. In a wider picture, gold still has the upside potential as the greenback feels somehow uncomfortable, while investors see a stall in US-China trade talks amid the reports that a meeting between Trump and Xi to sign a trade deal won’t occur this month and is more likely to happen in April at the earliest.
In the near term, the yellow metal needs to get back above the $1,310 level, while on the downside, an important support comes around $1,290. A more significant support level lies at $1,280 but the risk of a break below this level is rather low now.
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