Gold Chart

Gold was under pressure throughout the entirety of the regular trading session on Monday flirting with psychological support at the $1300 level before managing to push back above it and close out the pit session above it.

As trade has moved into Asia this evening, the market is coming under pressure once again and has now fallen below $1300 moving as low at $1288 before managing a wee bit of a bounce. The market simply looks heavy as it is now backing down to the bottom of its range.

Remember, the $1280 level is where it was jammed lower last week just prior to the release of the payrolls number on Friday. If the market does not rebound back, it will move towards $1260.

Weakness in the mining sector continues to undermine the metal. Also, the grains are weaker undercutting the inflation from the food sector side of things.