Gold stuck at 5-DMA on dollar strength

Gold is having a tough time breaching the 5-DMA hurdle of $1133 levels in Asia as the American dollar remains solidly bid amid thin volumes. 

5-DMA is a tough nut to crack

The 5-DMA level is a tough nut to crack, given the metal failed to hold above the same in the last two trading days. 

The Dollar Index rose to a fresh decade high of 103.63 levels, while the US stocks clocked a fresh record high. Thus, there is little appetite for the safe haven assets like gold. The trading volumes are likely to remain thin in the run up to Christmas. 

Gold Technical Levels

The metal was last seen trading around $1130 levels. A break above the 5-DMA level of $1333 could yield a test of 10-DMA at $1145. On the lower side, breach of support at $1125 (previous day’s low) would expose the psychological level of $1200