Gold struggling for direction at $1335 ahead of US GDP

As the BOJ-led volatility subsided, Gold seems to lose its safe-haven appeal and now retraced from session high level to currently trade absolutely flat around $1335 level.

A broadly weaker US Dollar, accompanied with risk-aversion led by BOJ disappointment, seems to extend some support to the precious metal. However, despite of its sharp up-surge post FOMC announcement, the yellow metal has failed to sustain its move above 20-day SMA, clearly suggesting that the near-term corrective move could get extended in the near-term. The view, however, gets negated if the metal manages to decisively clear this immediate hurdle.

With the passage of major event risks, namely - the FOMC and Bank of Japan monetary policy meetings, investors now shift their attention to today's US GDP release that could provide the much needed respite for US Dollar bulls and weigh on the precious metal. Meanwhile, a disappointing reading now seems to pave way for a fresh leg of up-move for the metal. 

Trade the US Gross Domestic Product - July 29 GDP Live Coverage

Technical levels to watch

From current levels, sustained move above $1338-40 region (20-day SMA) is likely to boost the commodity immediately towards a previous support, now turned resistance, near $1350 region. On the flip side, decisive break below session low support near $1330 seems to drag it back towards $1320 intermediate support ahead recent daily closing lows support near $1315-14 area.