Gold turns positive for the day above $1,330

Gold managed to erase losses during the American session after the US dollar lost momentum. The ounce rose to $1,331 reaching a fresh daily high near the end of the session. It was still moving around $1,330 still unable to make a clear rally above. 

The yellow metal gained ground helped by US President Trump comments regarding UN sanctions to North Korea. He mentioned that the resolution is just "another very small step, nothing compared to what ultimately will have to happen." 

The slide from 1-year highs at $1,357 found support earlier today at a $1,322 a 2-week low. From that level, the metal is attempting to recover. 

Technical outlook 

Gold seems poised to extend its recovery, explains Valeria Bednarik, Chief Analyst at FXStreet, taking into account that the daily chart, shows that technical indicators pared their declines well above their mid-lines, coming from extreme overbought territory, now horizontal, whilst the price remains well above sharply bullish moving averages.

“In the shorter term and according to the 4 hours chart, further gains are still unclear, as the price remains below a bearish 20 SMA, providing a dynamic resistance at 1,338.10 while technical indicators are recovering ground, but still within negative territory”, concludes Bednarik.