Ole Hansen, head of commodity strategy at Saxo Bank, digests the moves of gold following the Bank of Japan’s monetary policy meeting on Wednesday.

There was some initial weakness on the back of a stronger US dollar, he says, but levels have bounced toward the resistance zone of 1,325-30.

Hansen says that although gold has become increasingly stale and needs a deeper correction, the Federal Open Market Committee announcement later on Wednesday needs to be dovish in order for gold’s rally to continue.