Gold continues under pressure overnight after last week's tepid bounce. Gold managed a meager $15 bounce on Friday but could not sustain any momentum into the close.
Overnight the dollar continued to appreciate, which brought fresh selling into the commodity space. The technical charts look terrible for gold but a possible support zone exists around $1,207. Watching the euro/dollar for a quick entry point will be important.
The euro is close to 1.15 to the dollar and we would expect some support at this level. If the euro breaks below the 1.15 figure, further selling in gold should be expected, with a test of the $1,202 line the first objective.
Should gold recapture the $1,213 area, we would expect a drift higher to the $1,220 area.
Source: Kitco News