The price of gold rose at $1,255.52 an ounce on Monday, partly lifted by steady flows into exchange-traded funds (ETFs) and a dip in the dollar after touching seven-month highs. Gold tumbled in early October, and basically holds below the 200-day moving average, lingering around $1,250. It fell to $1,247 on building inventories. Federal Reserve Vice Chair Stanley Fischer said the U.S. economy may face longer and deeper recessions in the future if interest rates remain stuck at current low levels, mapping out a world in which low growth hamstrings central banks from effective recession-fighting. The dollar index was kept under pressure, providing a floor to gold prices. We believe that gold would steady at current level in near term.

On chart, gold’s support gradually lowers toward $1,250 as the consolidation continues. If the level is lost, investors’ sentiment will see dramatic changes once again. The next support can be found at around $1,200. In case that the 200-day moving average of $1,266 is breached above, a new round of upturn will be triggered. Gold is expected to move to the 100-day moving average of $1,313.

 
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