Gold prices rose at a slight pace during Asian trading on Monday, but it remained within the scope of narrow circulation amid pressure from the strength of the dollar. Investors are awaiting the main U.S. inflation data this week.

- The dollar derived its strength due to the evaluation of the expectations of interest rates by the Federal Reserve, especially after reading the data of the Strong Procurement Manager Index on Friday.

- This reading has increased the concerns caused by the strength of the American economy, which may give the Federal Reserve Bank a greater justification for maintaining high interest rates for a longer period.

- The focus is now largely on reading the upcoming personal consumption expenses index, due next Friday. This reading is the preferred inflation scale of the Federal Reserve, and it is likely to take into account the expectations of cutting interest rates.

- Personal consumption expenses may appear to be some slowdown in inflation, but they remain much higher than the annual goal of the Federal Reserve of 2%.

- The high interest rates for the longest negative scenario for precious minerals, given that it increases the cost of an alternative opportunity to invest in non-reinforced assets, including gold.

- On the other hand, the prices of other precious metals fell on Monday, after their movements have been largely limited in recent weeks. Silver futures decreased by 0.2 % to $ 29.895 an ounce.

Gold's Technical Analysis

- Gold is still under bearish momentum since the end of last week, and it moves below $2,330 an ounce. If it fails to break out the level of the aforementioned resistance, it may continue in the negative direction towards $2,317 as the first target, then $2,300 as a second target. If the yellow metal succeeds in breaking the level of psychological support of $2,300 with stability below the aforementioned level by a close of H4, then the support level targets $ 2,280 and then $ 2,250 an ounce.

An alternative scenario, a breakout of the resistance level of $2,340 allows gold to re-test $2,365 levels, which by hacking targets $ 2,385 and then a powerful and psychological resistance level of $2,400 an ounce.
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