Gold trading higher for third consecutive day

After an initial dip to $1336, Gold regained buying interest and has now jumped to session high level, trading in positive territory for third consecutive day.

A sharp reversal in the US Dollar, in the post-FOMC move, triggered a short-covering rally and lifted the yellow metal sharply higher to a 9-day high on Wednesday. The momentum assisted the precious metal to move back above 20-day SMA region.

On Thursday, a broadly weaker greenback continued boosting the metal, which is now attempting to build on to its strength above 20-day SMA to currently trade around $1341 region.

Adding to this, weakness in equity markets also seems to extend support to the safe-haven appeal of the metal. In absence of any major economic release on Thursday, traders would continue to take cues from the prevalent investor sentiment surrounding equity markets and any additional selling pressure around the greenback. 

Technical levels to watch

From current levels, momentum above $1342 is likely to get extended immediately towards a previous support, now turned resistance, near $1350-52 region. A follow through buying interest would confirm resumption of the metal's bullish momentum and pave way for extension of the near-term upward trajectory. 

On the flip side, $1332 level now seems to protect immediate downside, which if broken might negate possibilities of any further up-move and drag the commodity back towards $1315 support area.