Gold is lower in Asia-Pac trade on Monday,.....>

GOLD: Gold is lower in Asia-Pac trade on Monday, last down $1.07 at $1,330.77.

Gold was initially higher at the start of the session as the US government

shutdown dragged on, but dropped after news that a vote would be held later on

Monday. Despite rumours of a vote on Sunday night (US time) in the US the Senate

has now adjourned with a vote on a stop gap funding bill at 12 noon EST on

Monday, meaning the government will remain closed at least part of Monday. The

news saw the dollar index gain, DXY last up 0.039 at 90.612 which put downward

pressure on gold.

- Market looks ahead to the ECB and BoJ meeting later this week. The euro has

gained in Asia trade on encouraging signs from Germany that a coalition deal

could finally be reached, months after the inconclusive election. Gains in the

euro over the weekend put extra pressure on the dollar which helped gold gain

early in the session. 

- MNI technical analysis sees support at $1321.2 - Hourly support Jan 12,

resistance is seen at $1338.0 - High Jan 19. Momentum studies have corrected to

neutral levels but other studies correcting from O/B weigh.