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GOLD: Inside day near daily support

In spite of the continued strength in the dollar, GOLD has managed to hold above its daily support at 1268.42.  Any consolidation in the dollar should help it regain its short-term upside momentum this may be the beginning of a consolidation pattern in a downward trend.

On today’s economic agenda we have from the U.S the Construction Spending in July that is expected to rise to 1% showing signs of potential increasing new home sales. On the other hand from the U.S. the ISM Manufacturing in August is expected to fall from 57.1 to 56.8.

GOLD showed market compression in the course of the last two sessions, making two narrow range, inside days. We may expect today a market expansion with a wide range day or even days.

Expecting an upward move to 1302.20 on a break above previous day high at 1289.77 (scenario 1) or a break below previous day low at 1284.81 could push GOLD to a daily support at 1268.4 (scenario 2).