Gold prices ended Monday's session down 0.9%, or $10.85, to settle at $1183.20 an ounce.

Investors turned to the relative safety of the U.S. dollar after Greece's parliament failed to elect a new president for the country, paving the way for an early general election next month. The XAU/USD pair has tried to break below the 1180 support level a few times during the Asian session but this area has produced a bit of a bounce so far.

On both the daily and 4-hour charts, the Ichimoku clouds are on top of us. These clouds not only identify the trend but also define support and resistance zones. The thickness of the cloud is relevant too, as it is more difficult for prices to break through a thick cloud than a thin cloud. That means, if the bulls intend to take over, they will have to push the market beyond the 1193.55 – 1203 area first. From a technical perspective, breaking above 1203 could signal a run up 1221.

However, if the bulls run out of steam and prices drop below Friday's low, there is a possibility that we will revisit the 1170 support level. Behind that, the next challenge will be waiting the bears at 1163(59). A daily below the 1159 level would place control back in the paws of the bears as we head back to the 1131 – 1127 zone. Trading volumes will be thin with market participants sitting on the sidelines before leaving for the New Year holidays.