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.

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).

 

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