Gold stabilize above $1330 but seems vulnerable

After hitting a fresh two-week low and a subsequent retracement on Thursday, Gold now seems to have stabilized above $1330 level and is currently trading with marginal losses at $1335 region. 

Improving global risk sentiment has been the key factor denting the safe-haven appeal of the precious metal, which is now headed for its first weekly loss in the previous seven. Adding to this, Friday's upbeat Chinese macro data further boosted investor confidence, driving them away from traditional safe-haven assets - like gold. 

For the time being, the yellow metal has managed to hold 20-day short-term moving average support, currently near $1325, and now waits for fresh impetus from today's US economic release. Today's data has the potential to determine the short-term momentum and eventually drive dollar-denominated commodities, including gold.

Technical levels to watch

A sustained weakness below $1325 immediate support, the commodity seems vulnerable to drop back towards $1305-1300 handle support, which if broken would open room for extension of the commodity's near-term corrective move.

On the flip side, the commodity needs to build on to its recovery momentum above $1340 in order to resume its near-term bullish momentum. Above $1340 immediate resistance, the commodity seems all set to extend its upward trajectory towards $1365 resistance with minor intermediate resistance near $1350-52 region.