The precious metal posted solid gains in May, rising over 7.8% on the month. Gold was the second best commodity, next to crude oil. The gains in gold, however, saw prices turning flat near the highs. For two consecutive days, gold prices have closed flat despite being a bit volatile.
Will Gold Continue to Extend Declines?
Friday’s price action indicates that there is scope for gold prices to post a decline. This was evident from the lower opening this morning. The minor support is at the 1404 level. If this level gives way, then gold could potentially post declines much lower. The next main support is seen at 1354 which could be tested in the near term. Alternately, if gold continues to consolidate near the current levels, we expect to see flat price action for the short term.
