Gold snaps three-day losing streak in Asia

Gold prices snapped three-day losing streak in Asia to trade marginally higher around $1323 levels on the back of broad based USD weakness.

Monthly gain/loss – too close to call

The monthly opening price is $1310 and is just a few points away from the current level of $1323. Furthermore, we have US data – personal spending and personal income – due for release today.

US consumer confidence had clocked a 11-month high in August, while July payrolls had bettered estimate by a big margin. Hence, we could see personal spending figure better estimates.

To conclude, the metal could easily challenge monthly opening price if the US data prints weak and equity markets recover from yesterday’s sell-off. As of now, the metal is enjoying moderate monthly gains.

Gold Technical Levels

A break above $1326 (confluence of 10-DMA and 5-DMA) would open doors for a rally to $1332 (50-DMA). A violation there could yield $1343 (Sep 22 high). On the other hand, a breakdown of support at $1319 (session low) would open doors for $1315 (previous day’s low) under which 100-DMA support at $1311 could be put to test.