Gold climbed to a six-week high on Monday, although it did not show strong follow-through buying. From a technical perspective, overcoming and sustaining above $4,250 would provide a new stimulus for bulls, opening the path for further gains. With daily chart oscillators in positive territory, gold could surpass intermediate resistance around $4,270 on its way to the round level of $4,300.
On the other hand, the Asian session low near the $4,200 round level provides protection against an immediate decline. Any further weakening could be viewed as a buying opportunity, with support likely around $4,180 and $4,150. A decisive break below the latter would trigger technical selling, making the precious metal vulnerable to an accelerated decline toward the $4,100 round level. Further movement below this level would increase the bears' probability of gaining the upper hand.
