Gold bid near $1,320 on weaker USD

• Bullion clinched early highs near $1,330.
• USD-selling behind the up move.
• Upcoming US data next risk event in the metal.

The precious metal is reverting Friday’s pullback and is now posting decent gains in the $1,320/30 band amidst a renewed selling bias around the buck.

Gold up on USD weakness

The ounce troy of the yellow metal is gathering traction at the beginning of the week following an offered bias around the US Dollar, with the US Dollar Index (DXY) hovering over the 90.20 region.

Bullion is expected to remain under scrutiny later in the week in light of key US data releases including inflation figures measured by the CPI and retail sales for the month of December, all looking further into the potential prospects for extra tightening by the Federal Reserve throughout this year.

That said, CME Group’s FedWatch tool is now seeing the probability of a 25 bp rate hike at the March 20-21 meeting at 77.5%.

Gold key levels

As of writing Gold is up 0.38% at $1,321.14 facing the next up barrier at $1,331.01 (10-day sma) seconded by $1,335.75 (21-day sma) and then $1,351.07 (high Feb.1). On the other hand, a breakdown of $1,307.15 (low Feb.8) would open the door to $1,303.92 (55-day sma) and finally $1,294.23 (100-day sma).