Have Gold Bulls Lost All Hope on Mondays Lower Close?

Gold closed lower on Monday ending a two day short covering bounce off last Thursday's low but remains above the 20 day moving average crossing at 1759.50. The low range close sets the stage for a steady to lower opening on Tuesday.

Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near term but many traders view intraday bias in gold to be slightly to the upside for now and see the odds as being high to bounce off the 1705 area and moving higher. Closes below last Thursday's low crossing at 1701.70 are needed to confirm that a short term top has been posted. Closes above the 10 day moving average crossing at 1809.10 would temper the near term bearish outlook.

First resistance is today's high crossing at 1839.00. Second resistance is August's high crossing at 1915.00. First support is last Thursday's low crossing at 1701.70. Second support is the 38% retracement level of this year's rally crossing at 1686.80.