Gold prices extended recent loses to fresh late-January lows around $1,281, where the bullion received some support and finished marginally higher yesterday. On Wednesday, the precious metal continues timid recovery attempts despite the dollar remains strong after the data showed a rebound in US housing and services activity.
Geopolitical headlines seem to be underpinning safe-haven gold demand at the moment, as North Korea is reported to be restoring part of a missile test site it began dismantling earlier. On the other hand, investor optimism over the upcoming US-China trade deal still caps the appeal of the yellow metal.
Meanwhile, Goldman Sachs remained positive on in its latest commodities report. The bank raised its forecast by $25 over the next three, six and twelve months to $1,350, $1,400 and $1,450 an ounce, respectively.
In the short term, the bullion needs to get back above the $1,300 threshold to regain the upside momentum. A daily close above this local resistance will improve the immediate technical outlook for the metal. But no strong rally is expected at the moment as risk-on sentiment still prevails in the financial markets and dollar demand remains robust.