On Monday, the precious metal gold inched lower, having posted another significant daily decline the US session. One of the major reasons is the strong dollar. The impact of a weak dollar was offset by gains on Wall Street.

During the previous week, the yellow metal had broken below the critical psychological level of $1,300 to hit a one-week low due to sharp gains in the dollar. On Monday, the market continues to trade in the same manner.

Gold – Technical Analysis

• On the hourly timeframe, gold is holding above support cum resistance level of 1,284.
• There’s a small bearish channel which extends support at 1,284 and resistance at 1,291.
• On the lower side, a bearish breakout can lead gold prices towards 1,281 and 1,277
• The RSI and Stochastics continue to play in the oversold zone.

 GOLD Trading Signal

We are holding a sell position below 1,288 with a stop loss of 1291 and take profit of 1315.
Good luck!