The greenback’s recovery has put strong pressure on the precious metal. Bullion has enjoyed so far a flamboyant rise to near last April’s high. The correction has been long due and could be a result of both technical profit-taking and weak fundamentals. On the geopolitical front, Pakistan is set to release a downed Indian pilot in an effort to defuse the Kashmir crisis. The de-escalation would downplay the safe-haven role of gold.
On the technical side, the metal is retreating towards the daily support of 1303. A break below could send the price to 1298. 1315 is a immediate resistance on the upside.