Gold rebounds from 3-week lows, eyes $ 1320 ahead of ECB

Gold staged a solid comeback from three-week troughs as risk-on moods eased a bit, while broad based US dollar weakness also underpinned the yellow metal.

Gold jumps-off lows just ahead of $ 1310

Currently, gold trades +0.35% near session highs printed at $ 1317.72, recovering from three-week lows struck in early Asia at 1310.76 levels. Gold ran through fresh bids over the last hours, with the recovery gaining further traction amid a retreat in the Asian stock markets, as cautiousness prevails ahead of the much-awaited ECB policy decision.

Moreover, renewed weakness in the US dollar versus its six major peers also lent support to the rebound in the precious metal. The USD index drops -0.10% to 97.05 handle, moving-off 97.25 highs.

Gold Technical Levels                                   

The metal has an immediate resistance at 1320 (round number) and 1325 (1h 50-SMA). Meanwhile, the support stands at 1310.76 (multi-week low) below which doors could open for 1300 (round number).