- Yellow metal retreats amid a stronger US dollar.
- Gold rejected from above $1,320 ends bullish correction.
A stronger US Dollar pushed gold prices to the downside during the American session. The yellow metal dropped to $1,312.90 reaching the lowest since Thursday. The move took place after being unable to hold on top of the $1,320 area.
The greenback strengthened during the last hours, hitting fresh highs versus commodity currencies, the euro, and the yen. The US Dollar Index rebounded erasing losses and rose back above 92.40.
Gold is about to post the second slide in-a-row. The positive signals from last Thursday when it rallied from below $1,310 to $1,320 disappeared. Price failed to post a close above the 20-day moving average. Today peaked at $1,322 before turning to the downside.
On Tuesday, US economic data due includes retail sales. Also, traders will focus their attention on US-China trade talks.
Levels to watch
To the downside, $1,310 is the immediate support, below the next key levels is the $1,300 zone: a break lower could add pressure pushing price initially to $1,290/92. On the upside, a close above $1,322 could signal more gains ahead. Above resistance level might be seen at $1,326 and $1,332.
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