Gold consolidates above $1130, flat for the week

Gold gained momentum during Friday’s American session and rose to $1135 but pulled back afterward, approaching $1130. It was marginally higher for the day and flat for the week. 

On a quiet session, the metal continued to move on a consolidation mode, near the lowest level in months. The stabilization in gold follows seven weeks in a row with declines. Since US elections the value of the ounce fell more than $150. 

Levels to watch

The bias continues to favor the downside as no major signs of correction area seen. Price remains within a bearish channel, with a key dynamic resistance now at $1140. A break higher could lead to a bullish correction and remove some downside potential. 

On the downside the immediate support is seen at $1125; while above here price action is likely to remain limited. A consolidation under $1125, could clear the way for a test of $1100. Actual market conditions ahead of holidays might help keep price moves in ranges. 

Gold Forecast 2017: Déjà vu all over again, but at the mercy of Trumponomics, Fed