Overnight, we have seen a very tight range, but gold is currently finding support above previous resistance at $1,588. A close below this level will be discouraging. Meanwhile, a retest and follow-through higher will put shorts on their toes at the $1,600 level. Going forward, a close above $1,597 will likely encourage further buying.
Nothing has changed over the last 24 hours, and traders still eye the U.S. Federal Reserve's Federal Open Market Committee meeting next week for a further signal in this market. Look to play the range while trading Wednesday and note that the $1,585 to $1,588 level should come in as solid support.
(Read More: El-Erian: Fed Faces One of Its Toughest Jobs Ever)