Gold: Recovery stalls at 10-DMA as USD picks-up

Gold extends its overnight recovery mode into mid-Asia, although the bulls appear to lose momentum as the US dollar jumps back on the bids across the board.

Gold capped below 10-DMA at $ 1326

Currently, gold trades +0.11% higher at 1324.97, unable to take strong offers lined up just shy of $ 1326 levels.  Gold remains bid, although moves back and forth in the narrow range, as the ongoing recovery from near 1318 region stalls amid a broad rebound in the US dollar, which appears to be mainly driven by a strong rally in USD/JPY following OPEC output limit deal announcement. The USD index now advances +0.07% to 95.38, reversing a dip to 95.28 lows.

The bullion also absorb mixed comments from a number of Fed official on the wires yesterday, while Fed Yellen’s stance to raise rates this year, also keeps a lid on the prices.  Markets now await the US GDP and pending home sales data for fresh incentive on the metal, while Fed speaks including Yellen’s remarks will be once again in focus later today.

Gold Technical Levels                                   

The metal has an immediate resistance at 1333 (50-DMA) and 1343.72 (2-week highs). Meanwhile, the support stands at 1320 (round number) below which doors could open for 1310.50 (100-DMA).