Gold prices slipped below $1,220 an ounce during one point on Monday as the dollar index rose to a three-week high against a basket of currencies and U.S. 10-year notes yields climbed to a one-week high. U.S. equities firmed, with the benchmark S&P 500's market value hitting record high. In the medium and longer term, political and economic uncertainty from the U.S., Europe and on the Korean front will drive prices high again.
On technical front, gold formed a long under-shadow line for two straight days, suggesting some support from below. The MACD index also pointed to a bullish tone. Bullion could find support and resistance at the 100-day moving average of $1,214.7 and $1,240 respectively.
Silver tracked gold, pressured by the 200-day moving average of $17.90. On chart, the MACD and momentum index suggested a bullish tone. The metal is expected to rise above $18 if it could cross over the resistance of the 200-day moving average.

 
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