Gold is erasing some of its losses from earlier in the session resulting from Core Durable Goods Orders coming in two basis points below analyst expectations. The Dollar appreciated across the board in reaction to the news, sending the precious metal tumbling due to its negative correlation with the Greenback. However, better than expected New Home Sales data helped stem the bleeding, bouncing the precious metal off of its $940/oz level. The EUR/USD and GBP/USD are holding onto their 1st tier and 2nd tier uptrend lines, respectively. Hence, gold is trading back within reach of $950/oz while hovering within the trading range created by our trend lines. Speaking of which, gold's trend lines will be experiencing multiple inflection points over the next 24-48 hours, relaying the theme of heightened volatility present in the FX markets. Investors will receive a truckload of heavily-weighted economic data tomorrow, meaning gold should remain in a respectable range until we see the results of America's Prelim GDP.

Gold will ultimately follow its negative correlation with the Dollar, meaning investors should keep a close eye on both the EUR/USD and GBP/USD and their interaction with their respective trend lines. It seems a turning point could be approaching this week. Since momentum has quickly turned sour for the Cable and EUR/USD, this does not bode well for gold. Hence, we believe gold's present pullback could pick up pace. Technically speaking, our gold's 2nd tier uptrend line should play an important role. If our 2nd tier doesn't hold, the precious metal may soon be testing 8/17 and 7/29 lows. Below these technical cushions gold also has our 1st tier uptrend line. As for the topside, gold must face our 2nd and 3rd tier uptrend lines along with the lid of the highly psychological $950/oz zone.

Present Price: $943.75/oz

Resistances: $944.50/oz, $946.40/oz, $947.92/oz, $949.69/oz, $951.46/oz

Supports: $942.98/oz, $941.46/oz, $939.94/oz, $938.04/oz, $936.90/oz

Psychological: $950/oz