Gold rebounds modestly, trades near $1280

Gold drops to multi-week lows on Monday.
US Dollar Index clings to small gains above 96.
Market sentiment doesn't provide any directional clues.

Eren Sengezer FXStreet

Following a drop to its lowest level since late December at $1276, the XAU/USD pair staged a modest recovery in the last hour and was last seen trading near $1280, where it was down $0.8, or 0.06% on a daily basis.

Since failing to rise above the critical $1300 mark earlier this month, the XAU/USD pair has been moving up and down in a consolidation channel with the $1275 handle forming a strong base. Although today's GDP data from China confirmed the economic slowdown in the world's second-biggest economy, a higher-than-expected growth in industrial production helped ease concerns and didn't allow markets to start the week in a dismal mood.

Meanwhile, with the U.S. bond and stock markets remaining closed due to the Martin Luther King Jr. Day holiday on Monday, the greenback stays relatively quiet and sits comfortably above the 96 mark, keeping the modest bearish pressure on the pair alive. As of writing, the DXY was clinging to small gains at 96.39.

Key technical levels

XAU/USD

Overview:
    Today Last Price: 1280
    Today Daily change: -0.80 pips
    Today Daily change %: -0.06%
    Today Daily Open: 1280.8
Trends:
    Daily SMA20: 1283.9
    Daily SMA50: 1252.63
    Daily SMA100: 1233
    Daily SMA200: 1228.8
Levels:
    Previous Daily High: 1292.56
    Previous Daily Low: 1280.65
    Previous Weekly High: 1295.9
    Previous Weekly Low: 1276.2
    Previous Monthly High: 1284.7
    Previous Monthly Low: 1221.39
    Daily Fibonacci 38.2%: 1285.2
    Daily Fibonacci 61.8%: 1288.01
    Daily Pivot Point S1: 1276.78
    Daily Pivot Point S2: 1272.76
    Daily Pivot Point S3: 1264.88
    Daily Pivot Point R1: 1288.69
    Daily Pivot Point R2: 1296.57
    Daily Pivot Point R3: 1300.59

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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