Gold rebounds and approaches $1300

Gold rebounds amid risk aversion still remains in a 3-day range.
US Dollar losses momentum after hitting fresh highs on US data.

Matías Salord FXStreet

Gold bounced to the upside, despite USD strength and climbed to $1,297/oz hitting a fresh daily high. Th yellow metal rose from $1,290 supported by a decline in equity prices and yields. In Wall Street the DOW JONES failed to hold to gains and was down 0.31%. Despite upbeat data, US yields were modestly lower, favoring the upside in gold.

After losing ground for three consecutive days, gold is up on Tuesday. It is approaching the $1,300 area where the 20-day moving average stands. A daily close above could signal more gains ahead for the metal.

XAU/USD Levels to watch

To the downside, the strong short-term support is seen at $1,289 (Jun 1 & 5 low), a break lower would clear the way for a test of $1,282 (May low), below the next support might lie at $1,275. On the upside, resistance could be located at $1,300 followed by $1,308 and $1,315 (Apr 26 & 27 low).

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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