Gold erases losses and climbs back above $1280

• US Dollar losses momentum and favors a rebound in gold. 
• XAU/USD remains in ranges, near weekly lows but again above $1280. 

Gold reversed its intraday trend following the European Central Bank meeting and Draghi’s press conference.  It was moving with a bearish and bottomed at $1276 (January low) and then bounced to the upside rising back above $1280. 

Is of writing trades $1282.30/oz, with a bullish tone but still in the range that has been in place since the beginning of the week, between $1276 and $1286. 

Economic data from the US failed to boost the US dollar and lower US yields supported the move to the upside in gold. The 10-year bond yield fell to 2.71%, the lowest January 17. In Wall Street, the Dow Jones is flat, and the Nasdaq gains 0.45%. 

Technical levels to watch

To the downside, a break below $1276 could trigger a test of the $1270 barrier. While to the upside, the key resistance is seen around the $1285 region, above gold bullish tone will likely intensify targeting $1290. On a wider perspective, a daily close significantly above $1295 is needed to clear the way to more gains.