Gold Finds Support Around $4,000/Oz Mark, Consolidation Phase Begins

The gold market appears to be shifting from a sharp correction into a consolidation phase.

Vedika Narvekar, Research Analyst at Anand Rathi Shares and Stock Brokers, suggests that recent trends indicate the worst of the downside may be behind us.

In July, gold showed signs of finding a base despite volatile market conditions. Treasury yields climbed to multi-year highs, the US dollar stayed firm, and both continued to act as headwinds for gold.

However, gold repeatedly found support around the $4,000/oz mark and ended July with its first monthly gain since February.