Gold off highs but firmly above $1300, consolidating near $1320

• Gold rose to $1325 before pulling back toward $1320. 
• The technical outlook improved significantly with the recent rally. 

Gold peaked today at $1325/oz, reaching the highest level since Tuesday. After the beginning of the US session moved of highs and pulled back to $1317. Near the end of the week, it was hovering around $1320, headed toward a modest weekly loss but far from the lows. 

The demand for the yellow metal eased today once equity prices bottomed in the US.  Yesterday XAU/USD bounces sharply to the upside following the announcement from President Trump of tariffs on steel and aluminum imports. It created concerns among investors. Today another wave of selling took place after Trump mentioned a “trade war”.

Levels to watch 

The rally of the last 24 hours pushed the price above important technical levels. It recovered $1310 removing the main bearish pressure. Also, it is rebounding from the psychologically important $1300 level that could suggest that a potential short-term bottom is in place. 

The chart still favors the downside, but the negative tone eased significantly with the recent rebound. On the upside, immediate resistance levels are seen at $1325, $1329.80 and $1332. The key level to the upside remains the $1360 zone: a close on top would signal more gains ahead.