Gold consolidated in directionless trade overnight, with the positive being that made back some of Friday's losses to open around 1290.00 in Asian trading. There does, however, appear to be a lack of momentum following Friday’s brief spike to 1301.00.
We expect gold, absent any geopolitical shocks, to remain in a 1280/1300 holding pattern ahead of the Jackson Hole Symposium. The street is likely unwilling to put on fresh longs ahead of Yellen’s keynote speech at the symposium. The risk being an unexpectedly hawkish tone leading to general U.S. dollar strength with the street short dollars in general.
Gold has resistance at 1294.50 and then Fridays’ high at 1301.00, which will be formidable initially but which we will expect to have a number of stop-losses above. Support is initially at 1280.00 followed by ascending trend line support at 1275.00, which dates back to early July and has held all subsequent pullbacks since.