Gold rebound from 50-DMA region, near-term trading range holds

Having posted a session low at $1331, Gold has managed to bounce-off 50-day SMA support but held on to its losses and is currently hovering around $1337 region. 

A broad based recovery in the US Dollar is weighing on dollar-denominated commodities - like gold, which is now trading lower for second consecutive session. Despite of Friday's sharp reversal and subsequent slide on Monday, the yellow metal remains confined within a broad trading range and has now formed a rectangular chart pattern on short-term chart. However, gold is now sustaining its weakness below 20-day SMA and is on the verge of breaking below recent trading range. 

Of-late, the precious metal had failed to benefit from recent slump in the greenback but is weakening amid stronger US Dollar. The price-action clearly points to the onset of near-term corrective move, which would be confirmed once the metal decisively breaks below the lower end of the trading range support near $1330-29 region, also coinciding with 50-day SMA.

Technical levels to watch

On a sustained break below $1330 immediate support area, the commodity seems to immediately head towards retesting $1315 level before extending its weakening trend even below $1300 psychological mark, towards testing 100-day SMA support near $1290 region. 

On the flip side, 20-day SMA near $1342-43 region now becomes immediate resistance, which if conquered would reaffirm near-term range-bound trade and lift the metal back towards the top end of the trading range resistance near $1357-58 zone.