Weaker U.S. Dollar Pressures Gold, is the Near Term High in?

Pressured by a weaker dollar and what traders view as a possible double top on Tuesday,  gold was lower in overnight trading as it consolidates some of the rally off July's low. Gold Stochastics and RSI are diverging but remain neutral to bullish signaling that sideways to higher prices are possible near term.

Closes above August's high crossing at 1915.00 would renew October's rally into uncharted territory. Closes below the 20 day moving average crossing at 1809.40 would confirm that a short term top has been posted while opening the door for a larger degree decline during September.

First resistance is Tuesday's high crossing at 1920.70. First support is the 20 day moving average crossing at 1809.40. Second support is the reaction low crossing at 1701.70. Gold pivot point for Wednesday trading is 1886.30.