The precious metal is trading about 1% higher on Tuesday.
The gains came after price action fell to the 1850 level briefly. With traders rejecting prices near this level, gold prices made a modest bounce to the upside.
Despite the modest gains in comparison to Monday’s fall, gold prices could be looking to settle into a range.
The upside will once again be challenged near the 1911.50 – 1900.00 level of resistance.
To the downside, the 1850 level is firmly established as strong support level.
Only a breakout from either of these levels will determine the next direction in the commodity.