Gold prices resumed the rally after a short period of a bearish correction. The bullion showed resilience despite heightened volatility, as the retreat was limited by the $1,380 area, where the metal has attracted demand and got back to six-year highs.
The recent events surrounding the G20 summit and resuming the dialog between the US and China fueled risk appetite, which made the safe-haven gold give up some gains. But despite the overbought conditions, the precious metal managed to recover above the $1,400 psychological level. On Wednesday, the rally has stalled just shy of recent long-term highs around $1,439.
AS investor optimism over the US-China trade truce continues to wane, gold prices could at least stay elevated in the short term, especially considering the persistent Trump’s protectionist policy as the US President threatens new tariffs on EU goods. Against this backdrop, the yellow metal will likely remain bullish in general, though there is a risk of a correction in the near term as gold looks attractive for profit-taking at current levels.