• Gold continues to trade with a heavy tone, with rebounds still lacking any real follow-through

• That is notable given the recent recovery in risk assets and the softer USD backdrop

• If gold cannot extend gains even when the broader setup should be supportive, bulls should be wary

• Gold has been stuck in a well-defined $3960-4200 range over the past month, leaving $3960 as pivotal support

• A break below support would open up $3887 initially. Below there, attention would turn to the 100-week MA ($3658)
gold vs usd and spx


Gold daily chart


Justin McQueen is a Reuters market analyst. (The views expressed are his own). ((Email: ))