Gold reverses a spike to $ 1339 in Asia

Gold ended its overnight consolidate phase and popped higher over the last hour, as mild risk-averse condition offered some support to the safe-haven.              

Gold holds above $ 1330

Currently, gold trades modestly flat at $ 1331.80, having failed to sustain near daily highs reached at 1338.43. Gold is seen reversing a knee-jerk spike to near 1339 levels, as shorts were taken-out after the metal broke above $ 1335 mark.

Moreover, the bullion found support from risk-off trades persisting on the Asian stock markets, while lower oil and base metals prices also made gold and attractive investment asset.

However, the upside appears capped as greenback continues to remain bid across the board, riding higher on the upbeat housing data-led wave. Meanwhile, the US dollar index trades +0.05% at 97.10 levels.

Gold Technical Levels                                   

The metal has an immediate resistance at 1340 (round number) and 1342.70 (10-DMA). Meanwhile, the support stands at 1325.60 (Jul 18 Low) below which doors could open for 1320 (round number).