Gold drops sharply to hourly 50-SMA

Gold ran through fresh offers over the last hour, now testing the hourly 50-SMA support located at $ 1347 as appetite for risky assets improve somewhat amid recovery in the Asian equities.

Gold supported above 5-DMA at 1345.50

Currently, gold drops -0.34% to 1348.24, having posted day’s low at 1347.13 and day’s high at 1353.47. The bullion failed to sustain at two-week tops once again and fell back below $ 1350 mark as a minor-recovery staged by the Asian equities dampened the demand for gold as a safe-haven.

Markets now await the crucial RBA policy decision for fresh impact on the overall market sentiment, which may influence the gold prices.

On Monday, the yellow metal extended its upbeat momentum for the second straight session and tested multi-week highs near $ 1355 levels, following the release of poor ISM manufacturing PMI data, which weighed heavily on the US dollar across the board.

Gold Technical Levels                                   

The metal has an immediate resistance at 1355.05 (2-week highs) and 1360 (round number). Meanwhile, the support stands at 1345.50 (5-DMA) below which doors could open for 1339.57 (20-DMA).