Gold attempts to retake monthly R3 at 1,209

The bullion's bears are trying to demolish the rally of Thursday when the metal had surged from sub-1,200 to above 1,245. Monday morning sees a moderate sell-off, as markets regain risk-taking sentiment. The key support is placed at 1,209 represented by the monthly R3. A drop below here would allow for a loss below the 1,200 psychological mark and in the direction of the October 2015 high at 1,191. Technical indicators still estimate more purchases and the RSI assumes gold is not overbought any more. However, the bullish scenario is quite unlikely to materialise over the next 24 hours.  

Bullish market participants' portion is up to only 44% by Monday morning, meaning the majority still prefers downward correction to growth.