Gold Opens Lower on the Strength of The U.S. Dollar

Gold was lower in Sunday evenings overnight trading session as it consolidates recent gains. Stochastics and the RSI are diverging but are neutral signaling that sideways trading is possible near term. Closes below last Wednesday's low crossing at 1791.00 would temper the near term bullish outlook.

Closes below the reaction low crossing at 1701.70 would confirm that an important top has been posted while opening the door for additional weakness near term, but strong support at the 1701-1705 level should bring strong support and a renewed uptrend. Closes above last Tuesday's high crossing at 1920.70 would renew October's rally into uncharted territory.

First resistance is last Tuesday's high crossing at 1920.70. First support is the 20 day moving average crossing at 1822.50. Second support is the reaction low crossing at 1701.70. Golds pivot point for Monday mornings trading is 1858.