Gold sell-off continues and falls below $1330

• Gold down $15 today and more than $25 from yesterday’s high. 
• Stronger US dollar and lower demand for safe-haven asset pushed the metal lower. 

Yesterday Gold traded at 1-month highs and it was looking of a test of 2018 highs. It failed to hold on top of $1,350/oz and started to correct lower. The decline gained speed today and now is back under $1,330. Recently printed a fresh low at $1,328. 

A firmer US dollar contributed to the slide in gold. The greenback rose further after Q4 GDP growth was revised higher from 2.5% to 2.9% above the 2.7% expected and also following trade data that showed a higher trade deficit in goods in February. The Dollar Index was up 0.52%, still below 90.00 but at 1-week highs at 89.80.

Technical outlook 

The reversal in Gold prices took place after price approached the key area around $1,355/60 that limited the upside during the last three months and also back in September. The metal needs to break that level in order to clear the way yo more gains. 

Now, in the short-term, the outlook has turned bearish. Today’s slide is pushing the price back under the 20-day moving average and below $1,330. The next support might be seen at $1,326 followed by $1,322. Under that level, an approximation to the $1,310 area seems likely.  On a wide perspective, gold continues to move on a range, unable to confirm a break above $1,355 while at the same time, being rejected from below $1,310.