- Gold upside faces resistance near $1,330.
- USD-weakness fuelling the up move.
- US CPI next risk event.
The ounce troy of the precious metal is extending the weekly upside and is now testing the $1,330 region, or daily highs.
Gold in 4-day tops
The offered stance around the greenback is pushing Bullion to test fresh multi-day tops around $1,330 on Tuesday, area coincident with the 10-day sma.
The US Dollar remains on the defensive so far this week and keeps erasing last week’s strong advance following a rebound in the demand for riskier assets.
In the meantime, the yellow metal is up for the second straight session and is already gaining around 2% since 5-week lows in the boundaries of the $1,300 handle seen on February 8.
Later in the week, the upside in Bullion should be put to the test in light of the publication of January’s inflation figures and retail sales in the US economy, all against the backdrop of a potential rate hike by the Federal Reserve at its March 20-21 meeting.
Gold key levels
As of writing Gold is up 0.51% at $1,320.40 facing the next up barrier at $1,335.25 (21-day sma) seconded by $1,351.07 (high Feb.1) and then $1,366.12 (2018 high Jan.25). On the other hand, a breakdown of $1,307.15 (low Feb.8) would open the door to $1,304.59 (55-day sma) and finally $1,294.46 (100-day sma).
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