Gold rebounds in Asia, but stays below $ 1300

By FXStreet Gold is seen reversing a brief spike to daily tops, although keeps the recovery mode intact from below $ 1290 levels, as the USD continues to remain broadly undermined.

Gold awaits Fed speak

Currently, gold trades 0.37% higher at 1294.50, having posted day’s high at 1297.02 and day’s low at 1289.70. The bullion dipped in early trades as markets took profits off the table after the recent upsurge to fresh 15-month highs, although the downward spike was short-lived and the prices picked-up strength as dwindling prospects of a Fed rate hike until Fed’s December policy meeting continues to weigh on the US dollar across the board.

Meanwhile, gold failed to react to the poor Chinese Caixin PMI release and now awaits Fed official Mester’s speech due later today for fresh hints on the Fed rate hike outlook, as the US economic calendar remains fairly light.

Gold Technical Levels

The metal has an immediate resistance at 1300 (psychological levels) and 1345 (July 2014 levels). Meanwhile, the support stands at 1285 (round figure) below which doors could open for 1277.60 (5-DMA).
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Source:: FX Street