Gold was stable against the US Dollar on Monday. The pair reached a new four-week high of 1,344.03 early in the session, and remained trading in the 1,345.00/1,340.00 area for the whole session. As apparent on the chart, the yellow metal fell short from its nearest resistance—the weekly R1—at 1,348.83. Thus, bulls might try to realise these gains, while further advance is unlikely. Meanwhile, technical indicators suggest that Gold could continue its movement sideways until the lower boundary of a steep one-week channel is reached circa 1,340.00. This area intersects with the 55-hour SMA that is expected to provide a strong support level. The base scenario favours the same lack of momentum within the following session.
