Gold extends recovery from 100-DMA, BOJ & Fed key

Gold set-off the week on a firmer note, extending its recovery from just ahead of 100-DMA located near 1306 levels, as focus now shifts towards the much-awaited BOJ and Fed events due later this week.

Gold regains hourly 50-SMA

Currently, gold jumps +0.40% to flirt with session tops reached at 1315.28 in the last hour, as the greenback corrects lower against its major peers, following Friday’s extensive rally triggered by rallying treasury yields.

Moreover, markets seek to lock-in gains heading into a big week ahead, with major risk events in the BOJ and Fed policy decisions to shape up the price-action in the yellow metal for balance of this month.

Gold fell sharply on Friday and almost neared $ 1300 mark after the US CPI figures came in much stronger-than expectations, which sent the US treasury yields through the roof as the upbeat CPI data reinforced Fed rate hike bets for this year.

Gold Technical Levels                                   

The metal has an immediate resistance at 1320 (round figure) and 1324.75 (20-DMA). Meanwhile, the support stands at 1306.20 (100-DMA) below which doors could open for 1300 (psychological levels).