Gold has climbed overnight to open just below 1220 in Asia this morning. Although the rally was only some 0.20%, this marks the third consecutive higher open in Asia for gold, as it picks itself up off the floor following last Friday's sell off to 1205.
The rally overnight has been driven by a lower U.S. Dollar in general. Investors more than likely taking advantage of more attractive levels to go long ahead of Fed Governor Yellen's two-day testimony to Congress which starts today.
Reaction to the latest developments in the Trump/Russia campaign saga has been strangely muted. Whether the street does not think this is a "smoking gun," apathy, Trump-fatigue or a combination of all of the above remains to be seen.
Although the rally from 1205.00 will be pleasing to gold bulls and now becomes technical support ahead of 1200 and 1195, gold faces stern technical resistance in the 1230.00/1231.00 region. This level capped gold multiple times last week and is now also home to the 200-day moving average.
Gold's near term direction will now be at the mercy of whether we get a hawkish Yellen on the Hill today, and potential further developments on Russia's generous offer to assist President Trump's campaign last year.