Gold markets continue to grind as prices went back and forth with low volume during the trading session on Monday. Traders are most likely waiting for the European Central Bank's decision due on Thursday, which will be followed by the Bank of Japan's meeting and then the U.S. Federal Reserve next week. Markets widely expect the Fed to cut rates by 25-basis-point at its July 30 meeting. Looking ahead, rising stock markets in Asia this morning are putting some pressure on the safe-haven gold, but for most parts, prices look steady as we seem to be on hold until we get to the Fed meeting.
Gold finished slightly lower on Monday closing around $1425 as prices missed to decisively move beyond the previous day's trading range forming a tight consolidation pattern. Monday's trading range was $7.8 and that's far below the month's daily average range of $22.4. Prices are trading close to the key technical resistance level at 1427 (R1), after failing to breach the 1418 support in the previous session. The RSI looks bullish suggesting that the short-term bullish trend is still intact.
Support: 1427 / 1418
Resistance: 1444 / 1448