Gold: Weaker in Asia, breaches 100-DMA – key support

Gold extends its week-long run of losses and breaches the key 100-DMA support, with the bears now eyeing a break below $ 1300 mark.

Gold drops on broad USD strength

Currently, gold trades -0.13% lower at 1310.15, flirting with daily lows reached at 1309.78 last hour. Gold extends its downward spiral solely on extension of broad based US dollar strength, as markets continue to cheer upbeat US manufacturing data, which bolsters the case for a rate hike this year. The USD index now advances to fresh session highs at 95.84, up +0.20% on the day.

Moreover, persisting risk-friendly market also weigh somewhat on the safe-haven gold, as traders seek higher-yielding assets for better returns. Markets now await the RBA policy decision due later this session, while the main risk event for the bullion this week remains the US payrolls data due out on Friday.

Gold Technical Levels                                   

The metal has an immediate resistance at 1316.47 (5-DMA) and 1325 (10 & 20-DMA). Meanwhile, the support stands at 1300 (round number) below which doors could open for 1295 (June levels).