Gold to resume the downside if DXY holds 95 handle and US yields rise, watch $1,180 double bottom

• Spot gold has been in a correction based on dollar weakness that came in at the end of last week.
• Gold is currently trading at $1,190.67 from a high of $1,192.68c and low of $1,190.46c.

While gold was climbing on Friday, the price is still technically in bearish territory and the DXY is making a foundation o the 95 handle which weighs significantly on the outlook for the precious metal while US yields continue to give the dollar the advantage - and if geopolitics kick up again, investors might be more inclined to search for yield and that has supported the dollar so far in 2018. 

The Fed is clearly on the move for the rest of this year and next which had lead to gold prices on the back foot for the month of September, suffering a monthly decline (six week's of losses in fact). 

Eyes on US yields

We will see how US yields play out again this week, but this is where investors wish to place capital currently. Stocks could start to become more vulnerable in an environment of higher rates - (Friday was a display of the bearishness brewing up - Italian budget jitters lead to the downside - Gold: Bulls rescued by the Italian crisis-led stocks turmoil

Gold levels

Technically, a break of the 1200 psychological level opens 1203 (50-D SMA), 1206.90 (Sept 26 high), 1210 (round figure resistance) while a break back to the downside in an extension, the levels are as follows:  1184.50, 1180 (double bottom zone), 1174.70 (Aug 17 low), 1160, 15th Aug spinning top.