Gold erases losses, hovering around $1,315

FXStreet (Córdoba) - Gold dropped before Wall Street opening bell to $1,306 reaching the weakest price since last Friday. The area around daily lows once again, capped the decline and the yellow metal rebounded after the beginning of the US session.

Currently trades at $1,316, 0.40% lower for the day and also for the week.

XAU/USD technical outlook

The short term outlook favors a continuation of price action between $1,306 and $1,325. Gold has been trading within the mentioned range since the beginning for the week, after rallying sharply in the previous days.

Momentum still favors the upside, but it the XAUD/USD fails to break above $1,325 possibilities of a downside correction will rise.