good support near $1.3310 on Friday. The low also represented the 38.2 percent retracement level of its November-February rally, and a weaker euro makes dollar-priced gold more expensive.
"The technical profile remains bearish. If prices are unable to regain $1,640 the market would target $1,525-$1,550. The RSI is down at 30.1, on the threshold of oversold and it's lowest in a year," said ANZ in a report.
"The current spell of weakness adds to the risks that we may undershoot our Q1 forecast of $1,730, especially if physical buyers hold back on expectations of further falls."
A raft of business surveys this week will be combed over for confirmation of hopes that a dire fourth quarter of 2012 marked the cyclical trough for the world economy.
Major powers plan to offer to ease sanctions barring trade in gold and other precious metals with Iran in return for Iranian steps to shut down the nation's newly expanded Fordow uranium enrichment plant, Western officials said on Friday.