Gold: Downside opening up towards 100-DMA?

Gold is seen adding to yesterday’s losses and now flirts with 10-DMA support, below which downside is likely to open up towards next horizontal support located at 100-DMA ($ 1310)

Gold drops USD strength

Currently, gold trades -0.08% lower near fresh session lows of 1325.16, with the upside capped by 20-DMA at 1327.65.  Gold extends losses into the third day this Wednesday, largely on the back of firmer US dollar across the board, after Clinton is seen winning the first US presidential debate, while upbeat US economic data released yesterday also strengthened the greenback. The USD index now advances further to 95.48, up +0.14% on the day.

Moreover, markets digest latest speech from Fed official Williams, noting that the US economy can handle rate hikes, further boosted the buck at the expense of the bullion. Looking ahead, attention turns to the key US macro news and Fed Chair Yellen’s testimony due later today for fresh moves in the USD-sensitive gold.

Gold Technical Levels                                   

The metal has an immediate resistance at 1333.20 (50-DMA) and 1343.72 (2-week highs). Meanwhile, the support stands at 1320 (round number) below which doors could open for 1310 (100-DMA).