January 4, OctaFX – The price of spot gold continued to race higher this week as risk-off trading sentiment favoured safe-haven asset classes, with the yellow-metal pressing towards the $1,300 level.
Gold has recently come back into favour, as investors increasingly worry about the slowing global economy and the ongoing trade war with China and the United States.
The XAUUSD pair had slumped to levels not seen since December 2016 last summer before staging a stunning reversal just last month. Gold also benefitted from seasonal demand, as Asian investors traditionally buy gold during the months of January and February.
XAUUSD Technical Forecast
∙ The XAUUSD pair is bullish while trading above the $1,248 level, key resistance is found at the $1,300 and $1,328 levels.
∙ If the XAUUSD pair trades below the $1,248 level, sellers could test towards the $1,230 and $1,220 levels.
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