Gold trapped between key support/resistance 1300/20

• Gold bulls hang in there on a knife edge.
• Gold bulls need to get above 1,320.

Gold's corrective drop continued on Tuesday but found a footing at the lows of $1308 when rallying to $1315 for the NY high to close at $1312.The driver of the overnight losses was continued positive performances in global equity prices keeping demand low for the safe haven precious metal.

Forex today: dollar and rates higher, inflation and Central Banks in focus

Gold in strong hands above key 1300

However, despite a mild pick up in the yellow metal, it ended lower for the NY session (for the second day in a row ) on the back of a continued resurgence in the DXY, fulled by rising US yields and sentiment for a Fed hike, however, gold remains in strong hands above $1300. 

Gold levels

The technicals still lean bullish on the daily sticks while above the psychological 1,300 level, but bulls really do need to get back above the 1,320 zone ahead of a key resistance at 1,333. However, the CCI indicator on the daily sticks, in stark contrast to a bullish bias, continue to edge lower towards zero. On the downside, supports could be seen at 1300 (psychological level), 1294 (Dec. 29 low) and 1286 (Dec. 28 low).