The precious metal is giving back some of the gains made on Wednesday, after rising to a nine-day high on an intraday basis, prices are pulling back.
This comes as investors wait on further announcements from the new Biden administration. Speculation is high that the new Democrats government, which also now holds a thin majority in Senate could announce new stimulus measures.
For the moment, price action in gold remains flat in anticipation of the news. The current pullback could see gold prices retesting the 1850 level.
If strong support is established here, then we expect further gains. The 1911.50 level of resistance becomes the next upside target.
If the 1850 handle is lost, then gold prices are likely to head lower. The 1817.80 level comes in as support.