Gold dips back below $1350 on broad based USD recovery

After posting highest daily closing in two-week on Thursday, Gold tipped lower to currently trade back below $1350 level amid a broad based recovery in the greenback.

Despite of the recent slump in the US Dollar, the yellow metal has failed to attract any fresh buying interest and remains confined within a short-term trading range. Buoyant sentiment surrounding the US currency on Friday is weighing on dollar-denominated commodities - like gold. 

The precious metal has even failed to benefit from the prevalent weakness in European equity market on Friday and maintained its offered tone. Nevertheless, the commodity might still be looking to end the week on a positive note with only minor gains. 

Technical levels to watch

On the downside, 20-day SMA near $1340 region remains immediate support levels to defend, which if broken decisively should now drag the metal below weekly lows support near $1335, towards $1330 intermediate support before aiming to retest an important support near $1315 level.

On the flip side, $1357-58 remains immediate barrier, which if cleared decisively is likely to lift the commodity immediately towards testing $1365 resistance before making a fresh attempt to move back towards post-Brexit highs resistance near $1375 region.