Gold attempts recovery towards $ 1320

Having bottomed near 1313 region, the yellow metal staged a minor-recovery, only to find fresh offers near 1320 levels in early Europe.

Gold hovers near multi-week lows

Currently, gold trades -0.34% lower at 1317.92, extending its retreat from fresh session highs of 1323.81. Gold is on a gradual recovery mode from near multi-week troughs, mainly driven by stalled USD buying across the board.

The US dollar hit fresh multi-month highs against its major rivals this Monday, as the bulls cheered last week’s upbeat US fundamentals, which brought Fed rate hike expectations this year back on the table. The USD index turns negative near 97.38. Off-highs previously posted at 97.62.

Meanwhile, the recovery found support from deteriorating risk sentiment as the Asian equities turned lower along with oil prices. All eyes now remains focused on the US interest rate decision due on Wednesday, which is expected to have significant impact on the gold prices.

Gold Technical Levels                                   

The metal has an immediate resistance at 1323.81/91 (daily high/ 1h 50-SMA) and 1330 (round number). Meanwhile, the support stands at 1310.76 (multi-week low) below which doors could open for 1300 (round number).