Gold continues to build a near term consolidation. There are increasing conflicting influences on the near term outlook (from a fundamental perspective) and this is playing out on the technicals as a consolidation range has formed between $1585 and $1642. Just in the past few sessions, the Fibonacci retracements (of the $1445/$1702 rally) at 23.6% (around $1642) and 38.2% (around $1604) are coming into play as near term gauges of sentiment for the consolidation. The momentum of last week’s bull rally has certainly tailed off in recent sessions, although there is still a positive bias to the outlook. The RSI is settled in the mid-50s, whilst MACD and Stochastics are still rising. We see hourly indicators reflecting this consolidation now (hourly RSI specifically between 40/60 is ranging). This is becoming a market in need of direction now as these mixed signals take hold. Something to also keep an eye on is that where previously the daily highs were successively higher, there have now been two successive lower highs and resistance around $1634 to overcome. Initial resistance on the hourly chart is at $1627. Below $1604/$1606 support opens the key near term support of $1585.