Gold: Rebound losses strength below $1320, remains in a range

• Gold continues to consolidate above $1,300/oz..
• Metal was not demanded after Trump’s decision on Iran

Gold bounced from levels near $1,300/oz and peaked at $1,317. The rebound was capped near yesterday's high. The area below $1,320 continues to limit the upside.

The metal is repeating yesterday’s behavior when it approached $1,320 and then rebounded, following the announcement of US President Trump about the Iran nuclear deal. Today fell during the Asian session amid a stronger US Dollar and then bounce, with the correction of the greenback. It lost momentum during the US session and after Trump mentioned that three Korean-Americans that were being held by North Korea were on a plane back to the US.

US data released today had no significant impact. The PPI rose 0.1% in April below the 0.2% expected. Tomorrow CPI data is due.

The yellow metal remains in range despite the rally to fresh 4-year highs in crude oil prices and the 0.80% gain in the DOW JONES Index that hit 2-week highs.

Levels to watch

Gold continues to move in a consolidation range between $1,320 and $1,300. A break lower could open the doors to an acceleration of the slide with an immediate target at $1,295; the next support could be seen at $1,288 and $1,282. To the upside, if gold manages to rise above $1,321 (20-day moving average) it would gain momentum for an extension of the recovery. Resistance levels might lie at $1,325 and $1,332.