Gold giving back the gains from late day rally despite geo-political concerns

FXstreet.com (Barcelona) - Gold rallied up to around 1,405 at 00:31GMT on building concerns over possible US military activity in Syria. However, gold dropped back down to 1,395 by 01:24 GMT and has been consolidating since then.

Gold now seeing “safe-harbor” money in addition to “weak-Dollar” money

Gold traders will continue to watch developments in the Middle East, but will also have to monitor the US data points due out Tuesday including the S&P Case Schiller Home Price Index, Consumer Confidence numbers and Richmond Fed Manufacturing Index.

Technical outlook for gold

Technicians say that gold should make it up to the 1,438 – 1,441 Fibonacci-generated target range before this rally phase is over. Short-term support for gold comes in at the horizontal line support created by the previous breakout point of 1,349.10 on the low side and by the 8/20 low of 1,351.60 on the up side.