Gold prices remain in a consolidative mode for over a week already, with bullish attempts are capped by signs of progress in the US-China trade talks and prospects of approving the Brexit deal. The bullion failed to challenge the $1,500 figure last week and struggles for direction since then.
On Monday, the yellow metal was rejected from the $1,495 intermediate resistance and slipped back to $1,484. In early trading on Tuesday, gold prices are making shallow recovery attempts as investors cheer positive developments on the trade front, with both the US and China made encouraging statements which lifted hopes that further progress could be made in negotiations before the meeting of the Asia-Pacific Economic Cooperation countries due in mid-November.
Also, let’s not forget that the prospect of lower US interest rates at the end of October remain alive, which could increase the appeal of the precious metal at the expense of weaker dollar. Besides, risk sentiment could deteriorate at any moment should Brexit developments turn negative. Technically, gold needs to get back above the $1,500 handle in order to see a more pronounced upside momentum down the road.