Gold stays resilient above $3,340 an ounce despite easing trade tensions

Despite reports suggesting easing trade tensions between the US and China, gold has maintained its position above $3,340 an ounce, as noted by analysts from Kitco News. The restart of financial conversations last week led to a surge in gold prices, supporting the precious metal in staying above this key threshold.

On Monday, after hitting a high of about $3,365 an ounce, the bullion took a pretty sharp dip over the last seven days. But when the stock market opened in North America, the price of gold kept going up, as experts from the news site commented.

The metal’s strengthening, according to Rich Checkan, head of Asset Strategies International, is a result of Moody's downgrade of US Treasury bonds from AAA to AA1. A tax bill's potential passage by Donald Trump has also stopped bullion prices from dipping below key support levels.

The renewed trade standoff between the two global powers is viewed by Colin Cieszynski, chief market strategist at SIA Wealth Management, as a significant factor that could drive gold even higher. He said that the next big breakthrough for the precious metal will be $3,500 an ounce.