Gold Prices Erase Losses

The precious metal is trading higher on the day, erasing the losses from last Friday.

The gains come amid a broader improved market and hopes of the new stimulus bill in the US.

Price action is back above the 1900 – 1911.50 level.

A strong close above this level is needed to confirm further upside toward the 1967 handle next. But there is also the downside.

If gold prices lose the 1900 region, then we could expect price action to retrace the gains. This will keep prices subdued below the 1900 level but supported above the 1850 handle.