The precious metal was seen giving up the gains on Friday as it extended declines for the third consecutive day. Gold closed 1.18% lower on Friday following the US payrolls report which came out stronger than expected.
The payrolls report dampened expectations of easy monetary policy. Improved market sentiment also helped to keep the price of the precious metal in check.
Gold Breaches the Trend Line
Gold prices broke past the rising trend line connecting the lows from May 30 and June 17. The breach of this trend line potentially indicates a move to the downside. The minor support at 1383.60 remains the initial barrier. However, a break down below this level could push gold lower to the 1354 handle. To the upside, the resistance level at 1404 will likely keep a lid on the gains.
