The precious metal is posting solid gains on Monday rising well over 1% during the day.
This rebound follows through from Friday’s reversal. Price action managed to close above the 1817.80 level.
However, with the stochastics oscillator rather overstretched into the overbought levels, we could see a move back to the downside.
This could also mean that gold prices could be forming a lower high as a result. This will suggest that the bearish trend is likely to materialize.
This view will change in the event that the precious metal can manage to close above the 1874 level.
To the downside, price action will once again likely consolidate near the 1817.80 level.
Still, gold prices will need to move below the previous lows near 1785.25 in order to continue to the downside.