Gold keeps bids, but fails to stay above $1300

London (May 3)  Gold failed to sustain once again above $ 1300 threshold and drifted lower, although keeps the bid tone intact amid ongoing weakness in the US dollar across the board.

Gold clings to $ 1290 support

Currently, gold trades 0.50% higher at 1296.30, retreating from near fifteen-month tops reached ahead of $ 1300 barrier. The bullion eases-off highs above 1300 levels, largely on a profit-taking slide as the prices failed to hold the upside above the last on yet another occasion.

However, the bullion remains well supported on the back of falling European stocks and a broadly lower US dollar, with the USD/JPY having hit fresh eighteen-month lows. Markets now await the sentiment on the Wall Street for further moves in the dollar-priced in precious metal.

Gold Technical Levels

The metal has an immediate resistance at 1301.79/03.79 (multi-month tops) and 1345 (July 2014 levels). Meanwhile, the support stands at 1290 (round figure) below which doors could open for 1278 (5-DMA).

Source: FXstreet