The precious metal fell to a seven-month low over the week before managing to recovery with bullish gains on Friday.
Price action closed with gains after Thursday’s doji pattern. This also comes near the support level of 1764.
With the Stochastics oscillator also turning higher, the current rebound could see gold prices likely to test the 1817.79 level of to establish resistance once again.
Overall, price action could remain trading within these levels for the near term. Further downside is likely if gold loses the support near 1764.
For the moment, there is a possibility that the precious metal could move to the upside.
This is especially true with the Stochastics oscillator on the daily chart moving deeper into the oversold levels.