There is strong resistance at $1,540. A break above this level could see gold test $1,548.

Gold is benefiting from a weaker dollar. Although there seems to be sporadic scrap-selling of gold, physical market buying interest has been strong so far this week, and we expect this trend to remain in place. We expect buying interest on approach of $1,530 and $1,526 to provide support.

There is strong resistance at $1,540. A break above this level could see gold test $1,548.