Gold retreats from one-week high
An early-week rally in gold has faded. The precious metal touched $1288 at the start of US trading but has given back $10 of gains and is trading at $1278.
There are no clear headlines behind the decline and the FX market is subdued today. Commodities are strong aside from natural gas, wheat and aluminum.
On the daily chart, gold looked like it could be breaking out of a consolidation pattern but the main level to watch is $1300/$1303.
The US CPI report is tomorrow and if it happens to be strong, gold could be in a bit of trouble.
