Gold consolidated near the bottom of its recent trading range overnight with a lack of new to provide any new price direction. Like many other markets this week, gold appears to be in a holding pattern with the increasing risk that stale long positioning may see traders head for the door until some directional clarity is restored.
Gold traded in a 1255/1260 range overnight and opened at a sleepy 1258.50 level this morning in Asia. Initial daily resistance still lies distantly at 1274.20 with the near term support much closer and likely to be of more concern to traders.
The Friday low and also the 100-day moving average is just below current levels at the 1253.00 regions, followed by the 50% Fibonacci retracement at 1249.20. A daily close below these levels would be a concerning development for gold bulls, suggesting a further test to the 1243 regions and possibly a deeper retracement to the 200-day moving average at 1230.00.