Gold is flat in Asia-Pac trade, the yellow.....>

GOLD: Gold is flat in Asia-Pac trade, the yellow metal last up $0.20 at

$1,262.55, but holding gains made during the session on Monday. The dollar index

(DXY) saw a bounce yesterday after reports that Senator Collins would support

the GOP tax bill thus giving it enough votes to get it through the Senate,

however DXY has dipped slightly in Asia-Pac trade which MNI sources note could

be on a bout of profit taking.

- Volume in the pre-Christmas week and all eyes will be on the proposed tax bill

vote in the House today with a limited economic docket.

- MNI technical analysis sees support at $1256.5 - Hourly support Dec 18,

resistance is seen at $1269.9 - Low Nov 14 now resistance. Correcting O/S

studies provided the impetus for a correction back towards layers of resistance

$1269.9-1289.5 where DMAs and bear channel top are noted. Layers of support have

accumulated with bears now needing a close below $1256.5 to gain breathing room

and below $1249.2 to shift immediate focus to $1235.9 and overall focus to

$1204.6-1214.0. Bulls need a close above $1269.9 to add to confidence.