Gold rebounds and rises to $1340 as USD slides

  • Greenback erases gains, back under pressure. 
  • Gold rebounds almost $10 from lows. 

The yellow metal recovered late in the US session amid a slide of the greenback across the board. Also, equity prices turned lower from record high levels. The Dow Jones was falling 0.05%, after falling more than 200 points from the highs. 

Gold rose from 2-day lows at $1,331.80/oz to $1,340.15. Near the end of the day, it was hovering slightly below $1,340. It recovered the bullish tone but so far the upside remains capped by a short-term downtrend line from yesterday’s highs. A break higher would expose $1,342 and weekly highs at $1,345. 

The retreat of gold was short-lived and signals that the bullish momentum remains intact, even after rising more than 8% since December 13. 

Technical levels 

To the upside, resistance levels could be seen at $1340 (Jan 16 high), $1345 (Jan 15 high) and $1350. To the downside, support levels might be located at $1331 (Jan 16 low), followed by $1322 and $1315 (Jan 11 low).
 

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