Gold is higher to start the week on Monday,....>

GOLD: Gold is higher to start the week on Monday, the yellow metal last up $6.98

at $1,323.64 but off highs of $1,326.80 earlier in the session. Gold initially

traded sideways before some rumoured buy programmes saw a $10/oz spike in prices

to session highs. There was nothing fundamental behind the move, sources note

the move higher looks like an algo stop run with a gap higher on thin air.

- A weaker US dollar has helped maintain the move higher, the DXY last down

0.35% on the session at 90.122, adding to the declines from Friday. Debt worries

and the impending budget and infrastructure bill releases have weighed on the

greenback which is lower against all of its major counterparts. The bounce in

the precious metal brings gold off the lowest levels for 4 weeks, having fallen

$42/oz from 2018 highs. 

- MNI technical analysis sees support at $1305.9 - Low Jan 4, $1332.6 - High Feb

7. The correction lower from 2018 highs continues and has seen a dip back

towards $1302.5-1305.9 where the 55-DMA is located only to bounce aggressively

which is less than ideal for bears.