Gold extends retreat from post-FOMC highs

Gold eases in the Asian trades on the back of a corrective slide, despite negative performance on the Asian equities.

Gold heads towards $ 1330 mark in Asia

Currently, gold trades -0.17% at 1337.40, having posted day’s low at 1336.32 and day’s high at 1340.75. The retreat in the gold prices from two-week tops post-FOMC gained further traction this session, after the bullion failed to resist above 20-DMA barrier now located at $ 1339.75.

Moreover, a minor-bounce staged by the US dollar versus its six major competitors, after three consecutive sessions of gains, also weighed on the bullish momentum seen around gold.

Gold prices rallied overnight and hit a two-week high as "the Federal Reserve (Fed) delivered a fairly nuanced message in the July statement, offering only modest changes to reflect the relatively upbeat tone in the economic data, while signalling that the near term downside risks might have eased," deputy chief US macro strategist at TD Securities Millan Mulraine noted.

Next in focus remains the BOJ policy decision and US GDP figures due tomorrow, which will provide further momentum on the USD-sensitive yellow metal.

Gold Technical Levels                                   

The metal has an immediate resistance at 1339.75/ 1340 (20-DMA/ round number) and 1346/47 (previous tops). Meanwhile, the support stands at 1310.76 (Jul 21 Low) below which doors could open for 1300 (round number).