Gold extends retreat towards 10-DMA

Having peaked at fresh weekly highs a day before, gold extends its retreat thereon, now testing daily lows reached ahead of 10-DMA now located at $ 1343.

Gold near $ 1340 – key support  

Currently, gold trades -0.20% lower at fresh session lows of 1344.65, heading for a test of 10-DMA. Gold extends its corrective slide into Asia and came under fresh selling pressure in the last hour, as the greenback jumped back on the bids across the board, after yesterday’s sharp downfall.

Moreover, a recovery staged by the Asian equities also added to the retreat in the yellow metal as risk sentiment improves. Markets moved past mixed US economic data released yesterday and now look forwards to the FOMC meeting minutes due later today, especially after hawkish Fed speaks delivered on Tuesday.

Gold Technical Levels                                   

The metal has an immediate resistance at 1347.94 (daily high) and 1350 (round figure). Meanwhile, the support stands at 1341 (5 & 20-DMA confluence) below which doors could open for 1326 (50-DMA).