INO

August gold closed lower on Friday and below the 10-day moving average crossing at 1202.50. The low-range close sets the stage for a steady to lower opening on Monday. Stochastics and the RSI are turning neutral to bearish signaling that sideways to lower prices are possible near-term. If August resumes the decline off June's high, the 38% retracement level of this year's rally crossing at 1183.90 is the next downside target. Closes above the 20-day moving average crossing at 1221.80 are needed to confirm that a low has been posted. First resistance is Tuesday's high crossing at 1218.80. Second resistance is the 20-day moving average crossing at 1221.80. First support is last Wednesday's low crossing at 1185.00. Second support is the 38% retracement level of this year's rally crossing at 1183.90.