Spot Gold consolidates within narrow range on Monday, following last Friday’s strong rally which marks the biggest one-day gains since 21 Mar.
Yellow metal’s safe-haven appeal seems to be fading as investors turned to the US dollar on persisting trade dispute between the US and China, as well as growing crisis in Turkey.
However, near-term structure remains firm and sees scope for extension of recovery leg from $1160 (16 Aug low) after consolidation.
Psychological $1200 support, reinforced by 20SMA, marks ideal support to contain consolidation and keep bulls intact for fresh upside, with close above 30SMA ($1208) needed to confirm scenario.
Conversely, increased risk of deeper pullback, which would put near-term bulls on hold, could be expected on close below 20SMA ($1200).
Res: 1208, 1213, 1217, 1228
Sup: 1203, 1200, 1190, 1183
