Gold nudges back up a little on the day but caution remains

In the bigger picture, gold is very much still in a consolidative mood. The price action this week is supported by the news that central banks are still intending to bolster their gold reserves in the long run. That is keeping slightly more underpinned in the last few sessions. However, the chart still outlines a rather sideways mood as of late:

Additionally, there is also the risk of a head-and-shoulders pattern forming as seen here. That argues for more caution in the days/weeks ahead, with the potential for gold to retrace to the downside further.

This article was written by Justin Low at www.forexlive.com.