The precious metal is trading somewhat bullish, building upon the gains from Tuesday. Price action is on track to close with gains for two consecutive days.
However, the pace of gains remains subdued for the most part this week.
For the moment, gold prices managed to find support from the lower channel line of the rising price channel.
This rebound should ideally see prices posting higher highs. Failure to post new highs could potentially signal a possible reversal.
We could, as a result, expect to see gold prices once again pulling back to the lower channel line.
Only a strong break down below the price channel will confirm further declines to the 1850 level.