Gold: lower lows and highs, bearish towards 1251?

Gold made a fresh low of $1,269 in the NY close settling at a nearly 2-month low as equities on Wall Street strengthen again. 

Wall Street finishes at record highs on upbeat data

Gold is making case for even lower lows in Asia with a new score to the downside located at 1269.38 today in Tokyo. In part, the stronger dollar, up 0.5% on Monday in NY also dampened the demand for the precious metal as an investment that doesn't otherwise offer a yield. Investors are looking for yield as van be seen in the higher beta plays and gold just doesn't stack up at the moment, especially with the prospects of higher rates. Gold closed lower on Friday when investors weighed up the likelihood of success for Republican tax-cut proposals which continues to fuel the bullish markets in the US and overseas with the prospects of higher rates. 

Gold levels

SPOT GOLD – bears may extend to $1263 after penetrating into rising daily cloud

Technically, a sell on rallies is the theme now that gold is in a strong bearish channel below the pivot with lower highs and lows, where old support is now new resistance with the scholastics and RSI bearishly configured MACD lines heading into neutral. Bulls need to get back onto 1,295 with a target above the psychological 1,300 level to negate the bearish trend.