Prices of the precious metal are holding firm above the psychologically important 200-day moving average at $1260 after buyers entered expecting a fresh spike in geopolitical tensions.
US President Donald Trump last night questioned the viability of an existing free trade agreement with South Korea, and asked Saudi Arabia to pay more for US military protection.
Gold slumped from a five-month high in mid-April amid investor hopes that Trump’s tax reforms would boost the dollar. Chartists view $1270 as the key level to watch out for. A close above that zone should change the short-term trend to upward.
On the downside, $1250 per troy ounce holds the key, with any dip below potentially signalling a resumption of the downtrend.
Gold is trending within a narrow range around $1265 an ounce in early trade on Friday.