Gold closed higher due to short covering on Wednesday as it consolidates some of the decline off June's high. The high-range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI remain bearish signalling that sideways to lower prices are possible near-term. If it extends the aforementioned decline, the 38% retracement level of this year's rally crossing is the next downside target. Closes above the 20-day moving average crossing would signal that a short-term low has been posted.