Gold just above flat line at 1,304; likely headed to 1,264 – 1,284 support

FXstreet.com (Barcelona) - Precious metals could not even muster any upside when the DXY reversed lower Monday. If not then, when? Once gold makes a low near 1,264 – 1,284 technicians say.

Gold continues to frustrate its bullish cabal

Gold futures had every reason to pop higher Monday as the US Dollar Index traded lower throughout the day after peaking at around 14:30 GMT. The sellers in gold may have been reacting to the next potential large move higher in interest rates and the DXY following the remainder of the current short-term move lower. They did have the US Fed’s Fischer’s hawkish commentary to digest, after all.

Technical outlook for gold

Technicians have gold continuing to pull back to at least 1,284 and possibly to 1,264 depending on how a series of Fibonacci lines are drawn. First, though, the bears will have to push gold through support at 1,300. Resistance for gold comes in at the 7/26 high at 1,340.90 and is backed up by the 7/23 – 7/24 peak at 1,349.10.