Gold is up by 0.5% on the day currently
Price is holding around $1,406 currently after having earlier touched a high of $1,408.15 as buyers are now contesting with key near-term resistance in the form of the 200-hour MA (blue line) @ $1,407.45.
For sellers to maintain the bearish bias, they need to prevent price from breaking above that as buyers will no doubt also aim for the 100-hour MA (red line) @ $1,411.52, which sits nearby, on a break of the former.
Although price action shows that gold hit a double top close to the $1,440 area, buyers aren't throwing in the towel just yet as they continue to hold off a firm break back under the $1,400 handle with the low in the past week being at $1,381.90 only.
It's still all about the Fed narrative and on Friday, that drove price back under the $1,400 before buyers are seen defending price action to the upside once again as evident by today's trading. The key near-term levels above will be a key battleground for gold this week ahead of more Fedspeak so keep an eye on those levels to determine the bias in gold.
Meanwhile, for any firm directional breaks, pay attention to the 1 July low @ $1,381.90 and the double-top highs close to $1,440. I reckon the next trade would be to go for a break on either side of those levels.
