Gold dips below $1350 ahead of US ISM manufacturing PMI

After once again failing to sustain its strength above $1350 level, Gold dipped lower on Monday and is currently trading below $1350, with only marginal losses.

On Friday, the yellow metal found strong buying interest after the US Dollar got slammed as lower-than-expected US GDP growth for second-quarter of 2016 diminished the prospects of an imminent Fed rate-hike, thus providing an additional boost to dollar-denominated commodities, including gold. 

Friday's up-surge assisted the commodity to decisively move back above 20-day SMA and test a previous strong support, now turned resistance near $1350-55 region. 

Further up-move would now be solely driven by sentiment surrounding the greenback, which now awaits the release of US ISM manufacturing PMI for fresh impetus.

Technical levels to watch

From current levels, weakness below $1345 immediate support could get extended back towards 20-day SMA near $1340-39 region, below which the commodity seems all set to slide back towards $1335-34 horizontal support. On the flip side, sustained strength above $1350, and a subsequent strength above $1355 level, now seems to pave way for a retest of recent swing highs resistance near $1370 area.