Gold Gives Back Gains After Testing 1874 Resistance

The precious metal attempted to post modest gains on Friday as price action tested the 1874 level of resistance.

However, prices gave back the gains rather quickly intraday to settle back near the 1850 handle. Failure to break out above the 1874 level of resistance could signal a possible move lower.

However, price action remains flat within 1874 and 1818 levels for the moment. Given the current positioning of the stochastics oscillator, we might expect to see prices pulling over and possibly testing the 1818 level of support.

But, on a weekly basis, we see price action trading within the range from the previous week. As a result, a breakout is likely to occur in the medium term