Gold eyeing a break above $ 1320 ahead of BOJ, FOMC

Gold extends its upbeat momentum for the second straight session this Tuesday, as the US dollar resumes its corrective slide from the US CPI-led rally.

Gold hovers around 5-DMA

Currently, gold trades +0.16% higher at 1316.17, holding well above 100-DMA placed at 1306.47. Gold keeps the bid tone intact as investors look to protect their capital amid increased uncertainty over whether the Fed and BOJ monetary policy outcomes due tomorrow.

The bullion is seen oscillating in a $ 4 narrow range, lacking a clear direction as the main market moving event for gold this week remains central banks’ events, which will shape up next direction in the precious metal for the month ahead.

Gold Technical Levels                                   

The metal has an immediate resistance at 1320 (round figure) and 1323.52 (20-DMA). Meanwhile, the support stands at 1306.47 (100-DMA) below which doors could open for 1300 (psychological levels).