Gold price forecast: XAUUSD heads back towards $1290

9 May 2019, AtoZ Markets – Despite ticking up to a three-week high, the precious metal couldn’t hold the gains yesterday after equities turned positive and market sentiment improved during late hours. With the US President Donald Trump’s tariff hike threats on Chinese goods offering a bump in the previously smooth trade talk journey, investors remain cautious ahead of China’s Vice Premier Liu He’s Washington visit to discuss further developments on the much-awaited trade deal.

There have been noises that China won’t surrender to the US and the Trump administration might secretly adopt soft stand despite tariffs on Chinese goods. However, nothing has been confirmed from the official sources as the meeting between the US and Chinese lawmakers are yet to take place.

Gold price technical analysis

Gold prices rose to a new 3-week high of $1291.36 per ounce during last session to test the trend line presented on the chart, however, it directly lost momentum and retreated towards the $1280 level. The price is currently trading just above the $1282.19 support level and looks set for another run to the upside. This time we will be focusing on the break above the trend line if the price settles above the 1285.35 resistance level.

Gold price forecast

Support: 1282.19/ 1280.11
Resistance: 1285.35/ 1288.35

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