After trading in a modest range between $1296 and $1299 for hours, gold broke to the upside, rising above the key psychological area of $1300. It reached at $1305 the highest since November 2016, the day of the US presidential election.

The yellow metal is up for the second day in a row. It started to rally on Friday after Janet Yellen speech in Jackson Hole. Earlier today the rally was capped slightly below the $1300 mark. That area also offered resistance two weeks ago. If it consolidates above it could open the doors for a bullish acceleration.

The weakness in the US dollar, the impact of Hurricane Harvey and incoming US data are likely to be main drivers of price action. Regarding economic reports, labor market numbers will be the most important of the week (ADP on Wednesday and NFP on Friday).



Technical levels

Above the immediate $1300 handle, resistance levels could be seen at $1307, followed by $1315 and $1328. In the flip side, the immediate support might now be seen at $1300 followed by $1294 (Aug 25 high) and $1284 (Aug 24 high).

