The yellow metal has been stable around $4,000 since the last week of October, with lower pressure seen as difficult due to political sentiment and the market remaining in favor of gold.
At 9.20 am, gold was at $4,049, up 1.20% since it opened early Monday in Asian trading.
This was facilitated by the Supreme Court, which is currently reviewing the validity of US tariffs. If Donald Trump loses, the money collected from the tariffs will have to be returned.
This situation is expected to increase the budget deficit and public debt, thus causing chaos in financial markets.
Concerns about this situation have prompted investors to seek refuge in safe assets. However, all this is seen as an attempt to repeat old tactics that can only delay the inevitable.
In China, the cancellation of VAT credits for precious metal retailers is expected to increase costs for the jewelry industry and further suppress demand. Exchange-traded fund (ETF) stocks also fell.
HSBC, Bank of America and Societe Generale are still maintaining their gold price forecasts at $5,000 per ounce. However, gold's upward momentum is fading and selling pressure is becoming more pronounced.
