Gold confined in a $5 narrow trading band

Gold traded in a narrow trading band on Wednesday between $1335-40 region and is currently trading at the mid-point of the range, awaiting for fresh impetus. 

On Tuesday, the yellow metal was rejected at 20-day SMA and erased all of its tepid gains on broad based greenback recovery after data showed US new home sales surged in July. Moreover, the precious metal failed to attract any safe-haven flow amid buoyant equity markets. Nevertheless, gold ended lower for third consecutive day and held its recent range-bound price action within a broader trading range. 

Of late, the commodity has failed to gain traction despite of a recent slump in the greenback. However, any recovery in the US Dollar is exerting some selling pressure, clearly indicating that traders might be positioning themselves for an upcoming corrective move. 

Hence, the upcoming Fed Chair Janet Yellen's speech at Jackson Hole Symposium and US GDP print would now be looked upon as an immediate fundamental trigger that could lead to the expected downslide in gold prices. 

Technical levels to watch

On the upside, 20-day SMA around $1343-44 region remains immediate resistance to clear, above which the commodity seems to extend the up-move towards $1352 intermediate resistance ahead of $1356-57 strong resistance, marked by the top end of near-term trading range. 

Meanwhile on the downside, the lower end of the trading range near $1330, also coinciding with 50-day SMA, might continue to protect immediate fall, which if broken decisively would confirm a break down and trigger a fresh leg of downfall that is likely to drag the commodity towards July monthly lows support near $1315-10 region.