Gold drops further to test hourly 100-SMA in Asia

Gold is seen extending its bearish momentum into mid-Asia, with the upside capped below the hourly 50-SMA located at $ 1360 levels.

Gold drops below 5-DMA at $ 1355.50

Currently, gold trades -0.10% lower at 1354.80, having posted day’s high at 1359.28 and day’s low at 1352.82. The bullion extended losses for the second straight session today, as the greenback continues to ride higher on upbeat US ADP and manufacturing data-backed wave.  

However, the losses appear restricted as the bulls receive some support from mixed sentiment on the Asian stock markets. Looking ahead, the bullion may stall its corrective slide and resume the recent uptrend as the BOE is likely to cut interest rates at its policy decision later today. Gold tends to benefit in a low interest-rates regime as it is a non-interest bearing investment asset.

Gold Technical Levels                                   

The metal has an immediate resistance at 1367.30 (3-week highs) and 1370 (round number). Meanwhile, the support stands at 1350 (round number) below which doors could open for 1340 (10 & 20-DMA).