Gold erases gains and remains in the recent range above $1300

The yellow metal peaked earlier today at $1,314/oz but lost strength and retreated. Recently it bottomed at $1,308, slightly above Asian session lows. As of writing, trades at $1,310, marginally higher for the day. 

It continues to move firm above $1,300 while the upside continues to be limited around $1,315. So the consolidation of XAU/USD remains in place. The bias still points to the upside, as price also holds above the 20-day moving average ($1,302). A firm break below $1,298 would open the doors to a more significant bearish correction. On the upside, a close above $1,315 would signal a test of January highs.  

Today’s retreat from the highs took place despite the rally in Wall Street. A rebound in US yields back to daily highs helped XAU/USD move lower. The 10-year yield rose from 2.65% to 2.68%.

Traders await now speeches by several FOMC officials, including Fed Chair Powell. Also in focus is the possible agreement between democrats and republicans to avoid another government shutdown.