Gold offered at 5-DMA

Uptick in gold ran out of steam at 5-DMA level of $1320 following which prices retreated to $1315 levels amid thin volumes on account of holiday in China, Australia and other Asian countries.

Eyes US data

Metal traders await the release of US ISM manufacturing data which is expected to show the activity returned to expansion phase in September.

Prices ticked higher in Asia tracking the gap down opening in Sterling after UK PM Theresa May said the article 50 triggered by March 2017. However, prices failed to hold on to gains as December Fed rate hike bets jumped above 50% as opposed to 48% seen last week.

Gold Technical Levels

Acceptance above $1320 (5-DMA) would expose $1326 (10-DMA). A violation there could yield $1332 (50-DMA). On the lower side, $1310 (100-DMA) could offer support, which if breached would shift risk in favor of a breach of $1300 (zero figure). The next major support is seen at $1284.53 (Mar 11 high).