Gold bullish correction is looking short-lived, prices falling back into lows below $1,310

• Gold recovery stalls, begins to reverse as Dollar resumes showing some bullish potential.
• The 200-day SMA is becoming a key support for Gold prices.

Gold is retreating back into recent lows near 1,310.00 as the US Dollar begins to resume its upward march.

SPOT GOLD – recovery attempts face strong headwinds

Gold prices managed to bounce from major support at the 200-day SMA after declining over 4.5% from April's highs of 1,365.00, but the recovery is proving to be short-lived as the Dollar gears up to resume climbing up the charts, buoyed by ongoing trade war concerns and still-high US Treasury yields.

Gold levels to watch

Gold's recovery from the 1,300.00 major level is shaping up to be short-lived, and the precious metal is falling back towards the 200-day SMA, now sitting at 1,305.45 after reaching a peak of 1,320.00 in Monday's trading. Gold's bullish move seems to be ending, and the recovery failed to come anywhere near the 50.0 Fibo level of 1,330.00, and if spot prices decline below the 200-day SMA then the way is clear for Gold to resume tumbling into November 2017's prices near 1,250.00.