Gold bounces of $1,306 key support, where next?

• Gold in recovery and eyes 1,332 while above 1,306.
• Weekly sticks still negative.

Gold is on the rise on Thursday with the DXY travelling with less velocity tot he upside and Wall Street's correction running out of steam.

Spot gold has rallied from $1,306 to score a high of 1322.12 so far while April gold added just $1.80, or 0.1%, at $1,316.40/oz, after scoring its lowest finish for a most-active contract since Jan. 9 yesterday.

Gold in convincing recovery?

Gold has been under pressure for all of this week so far due to rising bond yields and a resurgence in the greenback during the stock market rout that meant gold positions were pulled capital allocated elsewhere with margin calls requiring a repatriation into the dollar. 

Gold levels

However, from a technical point of view, the weekly sticks are still bearish for 2018 so far and the bulls need to hold above $1,306 as the 10-W SMA and 13 Oct weekly high. On further declines, initial supports are seen at $1,310, 1,306, $1.293 and $1,279 while resistances could be found at $1,322, $1,332, $1,350 and $1,366.