Gold bulls taking justified breather below record high

• Spot gold easing away from near-$3500 record high
   
• US, China showing some restraint in ongoing trade conflict
   
• Gold still in supportive environment; further declines could invite more buy-the-dip action
   
• Restored trade war and recession fears could see XAUUSD conquering $3500 with conviction

Gold bulls are taking a breather after its heady ascent to $3500 earlier this week.

Gold’s pullback is clearing some of the froth from its latest surge, as green shoots of pragmatism are starting to show amid escalating trade tensions between the US and China.

China is reportedly considering some tariff exemptions ...

while earlier this week, US President Donald Trump cited the prospects of lowering tariffs on China is there's a deal between the world's 2 largest economies.

Such headlines are slightly lowering demand for safe havens, which in turn is prompting spot gold to test psychological support around $3300.

Still, notable declines in spot gold are bound to attract buy-the-dip action, given the still-evident tailwinds for this precious metal.

As long global trade war fears keep feeding recession risks, gold bugs could ultimately conquer the $3500 level with conviction.

Spot gold could even take greater strides towards $4000 should the economic data confirm a US and global recession.