Last week was quite unsuccessful for the yellow precious metal. We can even say that this was the worst period for gold in the last two years: it fell by 3.6%.
One of the main factors of pressure on the value of the precious metal in November was the recovery in demand for risky assets amid the strengthening of optimistic sentiment regarding the trade deal between Washington and Beijing.
This week, gold managed to get support around the mark of $1,450 per ounce and even turn around from it to grow.
It seems that the pullback to the area of three-month lows, the precious metal adjusted the growth of the previous strong rally, which was observed in the period from May to September.
Recently, stock markets have been noticeably stormy due to conflicting news from the trading front, which adds to the attractiveness of gold as a protective asset.
On Tuesday, US President Donald Trump made several rather sharp remarks about the Celestial Empire, which raised concerns about the further course of trade negotiations between Washington and Beijing. However, on Thursday, Larry Kudlow, the White House's chief economic adviser, said the parties were close to a trade agreement.
If US stock indices turn to decline, even more investors may come to gold. This can quickly return the quotes to the area above $1,500 before the end of this month, and by the end of the year – to bring them to peak levels above $1,550.
