Gold rises back above $1320 on a weaker US Dollar

• Weak US dollar pushed gold to the upside. 
• XAU/USD moves sideways within consolidation range. 

Gold managed to recover from earlier losses and climbed back above $1320. Near the end of the session it was hovering near $1322, around the same level it closed last week.

During the day, gold failed to break above Friday’s high but remained on top of the low. Price moved sideways during all day within Friday’s range. It appears to be forming a short-term bottom around $1312. 

The rebound in gold was boosted by a weaker US dollar. The DXY dropped back below 90.00 and hit the lowest since last Thursday at 89.77. There was no particular trigger on the modest decline of the US dollar. It continued with the post-NFP slide ahead of Tuesday US CPI data. 

Technical levels 

Gold continues to move without a clear direction. The overall tone appears to be modestly bearish with the price being unable to recover above the 20-day moving average that stands at $1326. 

From current price, the immediate resistance is seen at $1325, followed by $1332 and $1338. On the flip side, support might lie at $1321, $1314 (Mar 12 low) and $1310.