Gold clings to gains at $1350 on safe-haven demand

Prevalent risk-off sentiment is seen supporting demand for safe-haven assets, with Gold now extending its rebound from 20-day SMA to currently trade around $1350 level.

A broadly weaker US Dollar provided an additional boost to dollar-denominated commodities, including gold, which is now attempting to break-through recent consolidation phase. 

Today's CPI, housing starts and industrial production data from the US would drive investors expectations towards an imminent Fed rate-hike in 2016 ahead of Wednesday's FOMC meeting minutes, which would eventually determine the near-term direction for the greenback and provide fresh impetus for the yellow metal.

Technical levels to watch

From current levels, $1356-57 area remains immediate barrier, which if cleared should lift the commodity towards $1366 intermediate resistance ahead of post-Brexit swing high resistance near $1375 region. On the flip side, weakness below $1345 level might continue to find strong support at 20-day SMA near $1337-35 region, below which the metal seems vulnerable to break through $1330 support and head towards testing $1305-1300 strong support area.