Gold buoyed by waning yields, but prices are backing under $1,320 as bulls pause

• Gold is getting propped up by a softening in US Treasury yields, but prices are struggling to develop momentum.
• Gold traders likely sitting on the sidelines until further US economic figures paint a clearer picture of rate hikes.

Gold kicked off the new week lifting into 1,322.00 as the US Dollar backs away from recent highs and US Treasury yields relax, but gold fiends couldn't get the wheels turning and the precious metal is sinking back to last week's close and back under 1,320.

Gold caught a bit of a relief rally recently after getting hammered by a scorching run up the charts by the Greenback which propped up on broad market expectations of a fourth rate hike from the US Fed this year, coupled with US Treasury yields marching higher as well, with the 10 year Treasury yield crossing the key 3% mark recently. Bonds have waivered recently and a slight slip in wages and income growth within the US economy has tempered market expectations of too many more rate hikes from the Fed this year, and Gold has been able to recover some of its lost footing as a result. 

Gold levels to watch

Despite Monday cooling off quickly, Gold's technical outlook still looks shaped for further gains, and as FXStreet's own Flavio Tosti noted recently, "the medium-term trend is bullish with the market trading above its 50 and 100-period simple moving averages (SMA) on the 4-hour chart but below the 200-period SMA. Immediate support is seen at the 1,320 psychological level and at 1,315 important supply/demand level. To the upside, if bull manage to break the 1,326 immediate resistance, the next scaling point is seen at 1335 previous swing low (April 12)"