Gold reverts towards $ 1340 in Asia

Gold prices kicked-off the week on a weaker footing, although managed to regain the bids somewhat as dust settles over Friday’s massive slump, despite poor US economic releases.

Gold back on 1330 handle  

Currently, gold trades +0.10 higher around $ 1337.24, extending recovery from 1332.88 troughs. Gold finds fresh bids in the Asian trades this Monday, largely on the back of cautious sentiment seen across the Asian markets, following the release of worse-than expected Japanese GDP report.

Moreover, the yellow metal is seen correcting the steep drop witnessed on Friday, after the metal failed to sustain weak US macro dataflow-inspired sharp rally to 1356.48. Gold prices reversed the spike following the comments from Fed official Bullard after he talked up the US economic prospects as well as the US currency during his speech in the American afternoon last Friday.

Next on tap for the metal remains the second-liner US data in the Empire State Manufacturing Index and NAHB Housing Market Index due later in the NA session ahead of a data-packed trading calendar this week.

Gold Technical Levels                                   

The metal has an immediate resistance at 1345.24 (10-DMA) and 1357.30 (Aug 10 high). Meanwhile, the support stands at 1329.92 (Aug 8 low) below which doors could open for 1322.32 (50-DMA).