Gold flat-lined around 5-DMA in Asia, UK declarations eyed

Dhwani Mehta FXStreet

Gold failed to sustain at higher levels and drifted lower on Thursday as extended post-Brexit rally in the global equities, combined with a firmer USD dampened the sentiment around the metal.

Gold supported above $ 1313

Currently, gold trades modestly flat at $ 1316.30, having posted day’s high at 1317.90 and day’s low at 1313.99. Gold prices inched lower this Thursday, after having booked nearly 1% gain a day before, as risk-on sentiment prevailed in the markets as Brexit shock fades.

However, the bullion remains underpinned as all eyes now turn towards the political declarations from the UK Conservatives party, which may yet again spur volatility into market and prop up gold’s safe-haven demand.

On the data-front, we have the usual weekly jobless claims to fill in an otherwise quiet NA session today. While Fed official Bullard’s speech will also remain in focus.

Gold Technical Levels

The metal has an immediate resistance at 1325.96 (Jun 28 high) and 1333.63 (Jun 27 high). Meanwhile, the support stands at 1310 (round number) below which doors could open for 1300 (round figure).

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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