On Thursday, during the European session, gold managed to recover some of the positions lost during the Asian session and is trading above $1,960 an ounce.
Precious metals market experts believe that the softening tone around U.S. stock futures is the key factor driving the influx of investment into gold.
Expectations that the Federal Reserve (Fed) will finalize its policy of raising interest rates are also providing additional support for gold bullion.
However, experts caution investors that a further recovery in the U.S. dollar will put pressure on the precious metal. In this regard, traders should be cautious before making bullish bets on the XAU/USD.
It is worth noting that mixed signals from the meeting between the U.S. President and the Chinese leader are dampening demand for riskier assets and boosting demand for traditional safe-havens.
In addition, the market continues to monitor the military standoff between Israel and Palestine.
This week, investors are awaiting speeches from Federal Reserve officials that may shed light on the future outlook for the U.S. central bank's monetary policy, as well as China's October housing price index data. Stronger Chinese data could impact the precious metals market as China is the world's largest producer and consumer of gold.
Currently, the XAU/USD is up 0.30% at $1,966.4.
The next resistance level for gold is $1,670. A consolidation above this level will allow the asset to continue its upward movement towards the $1,990 level.
In the opposite scenario, the XAU/USD pair may fall to the support at $1,950, overcoming which will open the way to $1,930 and below.
See also: BTC has crossed the $37,500 mark.