October Gold closed lower due to profit taking on Monday as it consolidates some of this month’s rally. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are overbought, diverging and are turning neutral to bearish hinting that a short-term top might be in or is near. If October extends last week’s breakout above February’s high, upside targets will be hard to project now that gold is trading into uncharted territory. Closes below the 20-day moving average crossing at 982.80 would confirm that a double top with February’s high has been posted.

First resistance is last Thursday’s high crossing at 1024.70.
First support is today’s low crossing at 995.60. Second support is the 20-day moving average crossing at 982.80.