Gold attempts recovery in Asia, despite risk-on

Gold attempts to recover ground somewhat this Wednesday, after having slumped more-than 1% yesterday on the back a profit-taking slide after the Brexit-led extensive rally to two-year tops.

Gold bounces-off $ 1313

Currently, gold gains +0.50% to $ 1320.69, having posted day’s high at 1321.20 and day’s low at 1313.38. Gold prices edge higher this session mainly on the back of a correction, following yesterday’s sharp declines. The US dollar regained strength across the board on Tuesday after the US GDP data bettered expectations.

Moreover, the bullion remains unperturbed by the risk-on rally in the Asian equities and a broadly stronger greenback as the looming political and economic concerns around the UK and EU underpin the safe-haven demand for the metal.

Meanwhile, focus now turns towards the EU Summit and the Fed’s preferred PCE price index data due later in the day for fresh cues on the gold prices.

Gold Technical Levels                                   

The metal has an immediate resistance at 1325.96 (Jun 28 high) and 1333.63 (Jun 27 high). Meanwhile, the support stands at 1308.12 (5-DMA) below which doors could open for 1300 (round figure).