Gold trims losses despite USD rebound, $ 1350 back in sight

Gold futures on Comex are attempting a minor bounce from two-day lows of $ 1343.40, as the bulls continue to find support just ahead of the hourly 200-MA located near $ 1342.20 levels.

Despite, a risk-on rally seen in the European equities, positive Treasury yields and broad USD rebound, the yellow metal is seen making headway once again towards the psychological levels of $ 1350, as the ongoing geopolitical tensions between the US and Russia over the Syrian strikes continue to underpin the sentiment around the safe-haven gold.

However, further upside appears capped as the investors prefer to hold the US currency heading into a flurry of US macro releases due on the card in the session ahead.  Meanwhile, a slew of Fedspeaks could also leave the gold bulls on the back foot, as the Fed officials deliver comments on the Fed’s monetary policy programme.

Gold Technicals

FXStreet’s Analyst, Omkar Godbole noted: “A move above $1,350 (previous day's high) could yield a re-test of supply around $1,362 (Feb. 16 high), above which a major resistance is seen at $1,365 (April 11 high). On the downside, breach of support at $1,341 (10-day moving average) would allow a drop to $1,333 (April 12 low) and $1,331 (50-day MA).”