Gold sold-off once again at 20-DMA, eyes $ 1330

Gold resumed its post-NFP weakness this Tuesday, reversing a temporary recovery attempt seen a day before, as broad based US dollar strength amid rising Fed rate hike prospects, weigh on the metal.

Gold flirts with lows on China CPI & PPI

Currently, gold drops -0.15% to 1333.90, hovering within a striking distance of fresh session lows struck at 1333.54. A minor-recovery staged by the bullion from NFP-led slump lost pace near $ 1338 region, sending the prices lower two-week troughs on the back of renewed gains seen in the greenback across the board. The USD index trades +0.14% higher at 96.43, looking to test weekly highs printed at 96.50 on upbeat NFP release.

Moreover, mixed China’s prices data also failed to offer support to the gold prices, keeping the prices largely subdued near the lower bound of today’s trading range. The Chinese CPI rose 1.8% y/y in July, slightly stronger than the 1.7% growth expected. PPI dropped sharply from 2.6% in June to 1.7% last month versus a 2.0% fall predicted.

However, the losses remain capped amid cautious tone prevalent across the Asian markets, while the gold traders await fresh incentives from upcoming US macro releases, which would throw fresh light on the US interest rates decision.

Gold Technical Levels                                   

The metal has an immediate resistance at 1345/46 (5 & 10-DMA) and 1350 (round figure). Meanwhile, the support stands at 1330 (round number) below which doors could open for 1328 (Jul 29 low).