The precious metal managed to make a modest rebound into Friday’s close.
Price retraced to the 1885 handle before easing back. On a weekly basis, the price action in gold remains quite bearish.
A follow-through into the week could signal a turnaround in prices as gold could be looking at further declines.
In the near term, the 1850 level remains the line in the sand at the moment.
If the precious metal fails to hold on this support, then we expect further declines to continue.
For the moment, the price action suggests a retracement to the 1891 level.