Yesterday gold price went down and touched a new three week low at 1272.60, but restored by the end of the trading session due to USD correction, as the traders’ focus changed from the tax reformation to the macro economic statistics in USA. The anticipation of the new Fed’s head assignment adds the uncertainty into the market. A big win for Japan's ruling coalition left doors open for an ultra-loose monetary policy and provided an additional boost to the Dollar, which was eventually seen exerting fresh selling pressure around dollar-denominated commodities - like gold.
If you look at the daily chart price finds support at 100 DMA for the last four days, even though it broke yesterday but later able to close above it. A daily close below yesterday’s low will open further bearish move towards 1262.90/1257.50 support range.
On the other hand a daily close above the previous daily high [1291.00] will open up further move towards 1300.00 and later towards 1307.00.
Support: 1277.50 & 1272.60.
Resistance: 1283.50 & 1291.00.