Gold prices remain in a bullish trend, with the bullion refreshed six-year highs on Monday as the US and China announced fresh mutual tariffs. The prices extended gains to $1,555 but then retreated below $1,530 as risk aversion has somehow abated.
Nevertheless, the precious metal will likely stay elevated and could register fresh long-term highs as trade tensions persist. In particular, the Chinese foreign ministry said that it was not aware of the phone calls over the weekend despite the US President Donald Trump’s claim that Beijing had sought a return to the negotiating table. So, there is still no indication of a progress on that front, and the uncertainty remains elevated ahead of the next round of trade negotiations due in September.
Due to heightened tensions, as well as Brexit-related issues, the inversion of the US yield curve and growing recession fears, the yellow metal will likely retain its safe-haven appeal and could target $1,600, though the $1,555 resistance is tough enough and to break it, the bullion may need a clear bullish catalyst.