Gold slides below 50-DMA, breaks through recent trading range
|Following a consolidation phase, Gold finally broke on the downside and has now dropped below 50-day SMA to currently trade at 4-day low near $1327 region.
An early recovery in US equity markets seems to negate the risk-off sentiment prevalent during European session and denting the safe-haven appeal of the yellow metal.
Moreover, a stronger greenback, as measured by the overall US Dollar Index, which got an additional boost from the release of better-than-expected consumer confidence data, is also weighing on dollar-denominated commodities - like gold. The Conference Board's US Consumer Confidence Index for September came-in at 104.1 as against an expected drop to 99.0 from 101.8 (revised higher from 101.1) recorded in August.
Focus now turns to a speech from Federal Reserve Vice Chairman Stanley Fischer, which might resurface expectations of an Fed rate-hike action in 2016 and could weigh further on the precious metal.
Technical levels to watch
Immediate downside support is pegged at $1322 level below which the metal gets exposed to retest $1310 support area. On the upside, 50-day SMA near $1332 region now becomes immediate resistance, which if cleared might lift the commodity back towards $1342 strong resistance.
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