Gold confined in a narrow trading range above 50-DMA

Gold maintained its near-term range-bound price action and has now recovered all of its early dip to 50-day SMA support near $1333-32 area.

Currently hovering around $1338, with mildly positive bias, a fresh bout of selling pressure in global equity markets is seen boosting demand for traditional safe-haven assets - like Yen, bonds and gold. 

Following last week's sharp up-surge on Wednesday, led by a broad based US Dollar sell-off on the back of disappointment from the Federal Reserve, the yellow metal has been confined in a narrow trading range near 2-week highs, suggesting a consolidative phase before a fresh leg of directional move in either side. 

With a relatively thin US economic docket, only featuring the release of new home sales data, the precious metal would take cues from the broader sentiment surrounding riskier assets - like equities, and greenback price-dynamics. 

Technical levels to watch

Immediate upside resistance is pegged at $1343-44 area (two-week high) above which the commodity might be all set to surpass $1350 resistance and extend its appreciating move towards $1365 resistance. Meanwhile on the downside, 50-day SMA near $1333-32 region might continue to act as immediate support, which if broken seems to drag the metal immediately towards $1322 intermediate support en-route its next major support near $1310 level.