Gold hits fresh 6-day highs but lacks follow through above $1340.

• Gold hits fresh highs but retreats to pthe revious trading range. 
• Weaker US Dollar support gold gains but upside capped by $1340. 

Gold spiked to $1,342.60/oz during the US session but failed to extend gains and pulled back to the previous trading range, slightly below $1,340. The yellow metal is rising of the third day in-a-row, accumulating a gain of almost $15 since last Friday. 

The move higher is being supported by a decline of the US Dollar. DXY Futures peaked on Friday at 90.28 and since then moved constantly to the downside. Today bottomed at 89.18, the lowest level since March 27. 

The greenback is falling today on the back of risk appetite. Wall Street indexes are sharply higher. Not even higher-than-expected inflation data helped the US dollar. On Wednesday, more inflation data (CPI) and FOMC minutes will be released. 

XAU/USD Technical levels 

To the upside, the area around $1,340 continues to offer resistance. If price manages to consolidate above, it could open the doors to $1,345 (Apr 2 high) and then $1,348 (Apr high). On the flip side, immediate support is seen at $1,338, $1,330 (Apr 10 low) and $1,320 (Apr low).