Gold closed higher due to short covering on Monday as it consolidated some of last week's decline. The mid-range close sets the stage for a steady 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, December's low crossing at 1075.20 is the next downside target. Closes above the 10-day moving average crossing are needed to confirm that a short-term low has been posted.
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