Gold continues to trade flat, stuck within the range of 1850 and 1900 levels.
Price action was a bit volatile into the close of last week.
However, there was a modest rally posted heading into Thursday’s close.
For the moment, gold prices are retesting the private low from 18th December.
If this level near 1879.25 holds out as resistance, then we could expect to see prices falling back to the 1850 level.
Only a strong breakout from within the set levels will potentially confirm the further direction in gold.
A retest of the 1850 support level could potentially establish the floor.
However, the stochastics oscillator is showing signs of a possible correction in price action. Therefore, a close below 1850 will open gold towards retesting the 1817.80 level of support.