Gold reverses a downward spike to $ 1313

Gold stalled its downslide and now attempts a minor-recovery back towards $1320 levels, as demand for the safe-haven resurfaces amid persistent uncertainty over global central banks’ monetary policy outlook.

Gold heads towards 5-DMA at $ 1327.10

Currently, gold trades -0.13% lower at 1319.25, trying another attempt to take-out daily highs reached previously at 1321.07. The yellow metal moved-off highs, although keeps the recovery mode intact amid a rather calm Asian session, with the Asian equities consolidating the recent run of losses.

The bullion, however, remains under pressure, as the US dollar keeps gains versus the Japanese yen, following reports by the Nikkei newspaper that BOJ is considering to cut rate further into the negative territory while trimming purchases of long duration bonds next week.

Focus remains on the BOJ and Fed policy decision due next week for next direction on the metal. In the meantime, the US retail sales and CPI data will be also closely eyed for further momentum.

Gold Technical Levels                                   

The metal has an immediate resistance at 1327.09 (5-DMA) and 1330 (round number). Meanwhile, the support stands at 1313.45 (daily low) below which doors could open for 1305.21 (100-DMA).