Interestingly, investors in the global financial markets ignored the statement by US Treasury Secretary Steven Mnuchin who said that the phase one trade deal is ready and will be signed in January. It looks like market participants are preparing for Christmas and New Year holidays, showing their fatigue. This apathy in turn suggests that the precious metal will likely continue to consolidate in the days to come.
From the technical point of view, gold prices have been rising since the start of last week and have a potential for extension. Meanwhile, in the weekly charts, the bullion remains in a consolidation mode. In the short term, gold prices need to challenge the $1,481 level in order to see a more sustainable upside bias. On the downside, the key support comes around $1,470. At this stage, risks for the metal are skewed to the upside as global stocks could see a deeper correction ahead of holidays.