The stock markets have slumped today. For once, investors have not bought the “close” headlines in reference to US-China trade deal. However, the dollar has remained supported for now, despite US President Donald Trump’s latest criticism of the Fed’s Chairman Jay Powell. As a result, safe-haven gold has not been able to benefit in a meaningful way yet. However, the precious metal was testing a key support area in the $1285 region at the time of writing. This is the area where it previously rallied from. So, it could potentially take off from here again, especially if stock market bulls refuse to buy this latest dip. However, a closing break below $1276 could pave the way for a deeper correction.
Source: TradingView and FOREX.com.