Gold gains amid weak US economic data. New Federal Reserve chairperson Yellen stated that the Fed would maintain an accommodative stance on monetary policy. The statement caused weakness of USD. Gold sits at a 3-month high. Gold made the largest weekly increase since August and it jumped 9.7% this year so far. Even in overbought territory, gold is ralling today at Asia's trading session. In the Asia's trading session gold is moving towards the resistance zone at the level of $1,335. It made a high at $1,329.65. Until gold crosses the level of $1,335, we do not expect further upmove.

In the hourly and daily charts, RSI stays in the overbought area. We remain bearish on the yellow metal. India reaches ahead if the wedding period starts from March and the central government eases its ban on gold import in this month due to the election period. The Indian government increased customs duty on the yellow metal three times in 2013. India is likely to see less than 500 tonnes of gold import in FY4 if the government does not loose the import restrictions.

Gold entered near crucial resistance levels at $1,338. If it trades above $1,338.0, then it may touch $1,360-$1,370.