Gold closed higher due to short covering on Monday as it consolidates some of last week's decline but remains below the 20-day moving average crossing. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI remain bearish signalling that sideways to lower prices are possible near-term. If it extends last week's decline, the reaction low crossing is the next downside target. Closes above last Wednesday's high crossing would temper the near-term bearish outlook in the market.
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