Gold is lower on Monday, the yellow metal......>

GOLD: Gold is lower on Monday, the yellow metal last down $1.20 at $1,255.25.

Bullion dropped from session highs on Friday after optimism around US tax plans

saw stocks hit record highs. Additional positive sentiment was garnered after US

Republicans reached a tax agreement, votes said to take place in the House and

the Senate midweek with hopes that the bill will be signed by Trump before

Christmas.

- The dollar index has declined marginally from early session highs, but is

still up 0.3% from opening levels on Friday at 93.971.

- MNI technical analysis sees support at $1249.2 - Hourly breakout level Dec 13,

resistance is seen at $1261.8 - High Dec 15. Bears failed to capitalise further

on recent fresh 6mth lows with the bounce easing immediate bearish pressure.

Correcting O/S daily studies add support to the case for a move back to layers

of resistance $1269.9-1289.5 where DMAs and bear channel top are noted. The

$1235.9-1249.2 support is key. Bears need a close below $1249.2 to gain

breathing room and below $1235.9 to target $1204.6-1214.0.