Gold off-lows, around $ 1320 ahead of BOE

Gold struggles to take on the recovery beyond $ 1320 levels in the European session, as the bear remain in control ahead of a batch of key economic news from the US, which may shed fresh light on the Fed’s interest rate outlook.

Gold capped below hourly 100-SMA

Currently, gold trades -0.16% lower at 1320.78, retreating from session lows struck at 1318.52. The yellow metal is seen trading in a narrow range over the last few hours, with markets turning cautious ahead of the BOE interest rate decision, which is likely to trigger huge volatility across the fx space and therefore, would have a major impact on the USD-sensitive gold.

While mixed trading activity seen on the European indices, also fails to lift the sentiment around the ultimate safe-haven gold. Further, a phase of consolidation in the US dollar across the board ahead of the US retail sales and manufacturing data, also keeps any recovery in the metal short-lived.

Gold Technical Levels                                   

The metal has an immediate resistance at 1325.66 (100-SMA) and 1330 (round number). Meanwhile, the support stands at 1316.10 (Sept 14 low) below which doors could open for 1305.81 (100-DMA).