The bullion rose over the last three days and managed to defend the key bullish trend line, while the price also jumped above the 100-day moving average. It was consolidating on Monday, changing hands at 1,220 USD, which was relatively unchanged on the day during the London session.
The price is now testing previous lows at around 1,222 USD and if this zone is broken, further rise toward the current cycle highs near 1,240 USD could occur quickly. However, stocks are rising today - Monday - which might be negative for the bullion.
On the downside, the support is probably at the 100-day moving average at 1,213 USD and then it could move to the major bullish trend line near 1,206 USD. As long as gold trades above these levels, the short-term outlook still seems positive.
The greenback seems to be topping, which could provide another bullish impetus for the precious metal as the Dollar index dropped back below the important 97.00 level and it seems to want to go further lower.
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