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  • The yellow metal rebounds from 6-month lows as DXY extends losses.
  • Gold heads for first daily gain after four losses in-a-row.

Gold erased daily losses and climbed toward the $1,270/oz area. The yellow metal bottomed at $1,261.30, the lowest intraday level since December 20.

Recently the metal reached $1,268.90 slightlky below the Asain session highs. It was hovering near $1,270 with the bullish tone intact. The recovery from the bottom took place amid a decline of the greenback.

The US Dollar Index peaked earlier today at 95.55 but failed to hold and pulled back below 95.00. On US hours, fell to 94.70 and it was trading with an intraday bearish tone.

The recent bounce from the lows could point to some consolidation ahead. Gold lost $40 in a week before today’s rebound so the recovery could also be attributed to some profit taking.

XAU/USD Levels to watch

The decline from $1,300 found support today at the strong $1,260 area. A break lower could open the doors to more losses. To the upside, resistance levels might be seen at $1,270, $1,281 and $1,288 (Jun 1 & 4 low).