Yesterday, the precious metal briefly touched a one-month low below $1,281 amid dollar recovery but finished the day in the positive territory. Today, the prices are under pressure again.
The sentiment towards gold looks mixed amid the factors that are pulling investors in opposite directions. In particular, the US-China trade talks are moving towards a deal, with the US President Donald Trump said on Thursday the two sides could announce a deal within four weeks. This fuels market optimism and adds to risk-on sentiment across the global financial markets.
On the other hand, Brexit uncertainty and evidence of global slowdown continue to cap bulls and thus limit the downside potential in gold prices. In the short term, the bullion will likely continue to trade around the $1,290 figure unless the upcoming US NFP employment data disappoint and send the riskier assets lower, fueling demand for safe-haven metal.