Gold prices continue to show sideways dynamics, trading in a tightening range since the start of the week. Price action is muted amid the lack of trade-related news, which makes markets directionless in the second half of December. The yellow metal registered one-month highs around $1,486 last week and has been consolidating in the $1,475 area since then. On Friday, the bullion shows a bearish bias, struggling to get back above $1,480.
Interestingly, investors in the global financial markets ignored the statement by US Treasury Secretary Steven Mnuchin who said that the phase one trade deal is ready and will be signed in January. It looks like market participants are preparing for Christmas and New Year holidays, showing their fatigue. This apathy in turn suggests that the precious metal will likely continue to consolidate in the days to come.
From the technical point of view, gold prices have been rising since the start of last week and have a potential for bullish extension. Meanwhile, in the weekly charts, the bullion remains in a consolidation mode. In the short term, gold prices need to challenge the $1,481 level in order to see a more sustainable upside bias. On the downside, the key support comes around $1,470. At this stage, risks for the metal are skewed to the upside as global stocks could see a deeper correction ahead of holidays.