The precious metal closed last week on a bearish note. This was the first weekly decline after four consecutive weekly gains. However, the bearish close in gold came as price tested a new six-year high at 1555.00 an ounce. Gold prices weakened modestly as the US dollar surged once again.
XAU/USD Likely to Correct Lower in the Near Term
The precious metal is expected to post a correction lower in the short term. Price action is likely to see gold testing the lower support at the psychologically crucial 1500 mark. A breakdown below this level could indicate further declines. The next main support area is seen at 1485 upon a successful close below the 1500 region.
