Gold is continuing its consolidation above $1230/oz as investors digest results from the Jackson Hole Summit. Bernanke's tone was rather bleak, as anticipated, and the Fed chairman iterated the central bank's defensive posture should U.S. fundamentals weaken further. The Fed's widening monetary stance could spell a weaker Dollar over the medium-term, which tends to be a positive for gold. However, the question becomes how great investor appetite is for gold as the precious metal approaches previous 2010 highs. Gold will need a strong catalyst to overcome $1250/oz and 2010 highs. Hence, investors should pay particularly close attention to upcoming U.S. data. If U.S. fundamentals deteriorate and uncertainty rises then gold may receive enough backing to top these aforementioned technical barriers. Although today's data wire lacks key data, investors will receive CB consumer confidence data tomorrow followed by the Fed's meeting minutes. Hence, market activity could pick up as the trading week progresses.

Technically speaking, gold has technical supports in the form of intraday and 8/25 lows. As for the topside, gold faces technical barriers in the form of 8/26 and 6/30 highs. Additionally, the psychological $1250/oz level could serve as a solid technical barrier should it be tested.

Present Price: $1236.28/ oz
Resistances: $1237.21/oz, $1238.62/oz, $1240.12/oz, $1242.58/oz, $1244.37/oz, $1246.71/oz
Supports: $1235.40/oz, $1233.59/oz, $1231.57/oz, $1228.80/oz, $1227.55/oz, $1226.17/oz
Psychological: $1250/oz, $1200/oz, August highs and lows

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