Off Recent Highs But Technical Backdrop Supportive

Gold is down a touch, last near $2355. We are off intra-session highs from Friday last week (which came in near $2380). At this stage we are 0.20% lower for Monday trade, after gaining 2.55% last week.

• A more stable USD backdrop, coupled with higher core yields, led by the US, is likely weighing on gold sentiment at the margins. Onshore analysts in China last week were also cautioning local investors around lofty gold price levels. We have key US CPI data later this week as well.
• The technical backdrop for gold remains supportive though. The end of the corrective leg lower has unwound the overbought condition and allows markets to focus on next resistance at $2431.50 - the bull trigger. Any return lower would eye $2255.0, the 50-day EMA.