The precious metal is on track to close flat on the day for Monday. This comes as prices attempted to rise intraday.
However, as the momentum fizzled out, gold prices form a lower high. This could potentially trigger a short term decline.
For the moment, the initial support level near 1859.50 comes into the picture. As long as this swing low from December 22 holds, there is scope for a rebound.
But a failure at this level will open the way for further declines. The 1850 level of support comes into the picture.
Despite the short term declines, gold prices are likely to remain supported at or near the 1850 level for the moment.