The precious metal was also trading weaker on Friday with prices down over 1%.
However, price action remains subdued for the moment with the sideways range between 1850 and 1818 levels holding up for the moment.
The lack of further bearish momentum is likely to see this possible consolidation resulting in either a strong retracement back to the upside. Alternatively, failure of support near 1818 could accelerate the decline.
The stochastics oscillator currently remains well above the oversold levels thus indicating further room to the downside.
However, the support level near 1818 is likely to hold up for the moment. As a result, gold prices are likely to continue trading in a sideways range for a while.
To the upside, only a strong breakout above the 1850 level is likely to accelerate any gains that might come its way. The next key target will be the 1911.50 level of resistance.
