Gold ends 3-day rally, drops to 5-DMA

Gold prices failed to sustain above $ 1350 barrier and fell back into the red this Thursday, extending its retreat from near $ 1357 region.

Gold: Upside capped by 10-DMA

Currently, gold drops -0.32% to 1343.25, retreating slightly from session lows reached at 1341.36 earlier on the day. Gold snapped three consecutive sessions of gains and slipped in today’s trading so far, as markets resorted taking profits off the table ahead of a sting of key economic releases from China as well as from the US.

Meanwhile, the bullion ignores increasing demand for safe-havens amid risk-off moods, while stalled recovery in the greenback versus its major peers, also failed to keep the gold bulls impressed.

The immediate focus now remains on the US jobless claims amid light trading, as Japan’s markets remain closed on account of a public holiday.

Gold Technical Levels                                   

The metal has an immediate resistance at 1348.70 (10-DMA) and 1357.30 (Aug 10 high). Meanwhile, the support stands at 1340.88 (5-DMA) below which doors could open for 1338.22 (20-DMA).