Gold extends losses, tests 50-DMA

Gold extended losses on strong US dollar, with prices now flirting with 50-DMA support located at $1219 levels.

Eyes Fed minutes

Dollar index rose 0.40% to trade above 95.00 levels, while oil strength helped calm equity markets. Hence, gold extended losses and fell to 50-DMA support. Prices have challenged bids around 50-DMA repeatedly since last three trading days, but failed to cut through the same on daily closing basis.

Traders now await Fed minutes release, which would throw a light on the possible timing of the next rate hike in the US.

Gold Technical Levels

Acceptance immediate support at $1219.05 (50-DMA) would open doors for a slide to $1207.69 (Mar 28 low) and 1200 levels. On the higher side, violation at $1244.12 (Mar 30 high) would expose $1253.32 (Feb 24 high) and $1260 (Mar 22 high).