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Gold consolidates yesterday's rebound but remains below $1,320

FXstreet.com (San Francisco) - The Gold recovered earlier losses from 1,302 to test the 1,320 resistance. However the XAU/USD hasn't been able to break above this level and currently it is moving sideways in between 1,315/20 range.

Currently the Gold is trading at 1,318, 0.10% positive on the day as its recovery extended, "although remains pretty shallow, as the metal barely stands above $1,300/oz," comments FXstreet.com Chief Analyst Valeria Bednarik. "Despite the run, risk remains to the downside as long as $1,342 caps the upside."

Technical outlook for gold

Technicians say resistance for gold comes in at 1,330, 1,337 and 1,342 – all horizontal lines. Short-term support for gold comes in at Wednesday’s low of 1276.90 and is followed by 1,212 – 1,214.

Oil, still “dangerously close” to $102 zone

Oil continues trading below the $103/barrel zone after falling from $104. Extending a 4th day losing strike out of five, oil futures traders and investors wait for Chinese data due later after the US ISM services index miss earlier this week.
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