Gold closed sharply higher due to short covering on Monday as it consolidated some of the decline off last week's high. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are oversold and are turning neutral hinting that a short-term low might be in or is near. Closes above the 20-day moving average crossing would confirm that a short-term top has been posted. If it extends this week's decline, February's low crossing is the next downside target.
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