Gold closed lower on Monday due to light profit taking but remains above the 10-day moving average crossing at .9338. A short covering rally tempered early gains and the high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near-term. Closes above the 20-day moving average crossing at 946.20 are needed to confirm that a short-term low has been posted. If August renews this month’s decline, the reaction low crossing at 882.00 is the next downside target.

First resistance is the 20-day moving average crossing at 946.20. Second resistance is last Friday’s high crossing at 949.00. First support is the 10-day moving average crossing at 933.90. Second support is last Tuesday’s low crossing at 913.20.