Gold: Above $1,300, but bull breakout remains elusive

• Gold trades above $1,300, having clocked one-month high of $1,309 yesterday.
• Technical charts show false breakout.

Currently, gold is trading at $1,302, having failed to capitalize on the bullish breakout.

The zero-yielding yellow metal rose to $1,309 yesterday - the highest level since May 15, signaling a bullish pennant breakout.

However, the optimism was short-lived as prices fell back to $1,300, possibly due to a sharp rise in the dollar index, following ECB's dovish taper announcement. Also, a better-than-expected US retail sales may have played a role in pushing prices back to $1,300.

4-hour chart

While prices have backed off from one-month highs, the bull breakout still remains on the card as bulls have managed to defend the $1,300 mark.

Gold Technical Levels

Resistance: $1,307 (200-day moving average), $1,309 (previous day's high), $1,313 (100-day moving average).

Support: $1,300 (psychological support), $$1,288.33 (June 1 low), $1,282 (May 21 low).