Gold eases in Asia, back below 5-DMA

Having staged a solid rebound a day before, the yellow metal is seen taking a breather and consolidates the massive gains, as investors remain wary ahead of Fed Yellen’s testimony due later in the NA session.

Gold mires near lows

Currently, gold trades almost unchanged at 1288.16, having posted day’s high at 1294.28 and day’s low at 1287.46. Gold’s rebound from below 1280 levels gained further momentum earlier this Tuesday after the US dollar fell further against its major peers, with the USD index at fresh weekly lows near 93.55.

However, the upside remained capped as easing Brexit worries after the latest two opinion polls suggested that Britain is likely to remain in the European Union (EU). Meanwhile, markets will closely monitor the developments surround the Brexit issue, while the main risk event for today remains the Yellen’s testimony before the Senate Banking Committee due later today.

Gold Technical Levels                                   

The metal has an immediate resistance at 1294.28 (daily high) and 1300 (psychological levels/ previous top). Meanwhile, the support stands at 1282.23 (10-DMA) below which doors could open for 1275 (round number).