Gold dips to $1314, weighed down by stronger US Dollar

After losing its upside momentum on Wednesday, Gold is retracing further on Thursday and is currently trading with marginal loss around $1315 level, still within striking distance of yesterday's near 2-year high closing level. 

A broadly weaker US dollar was seen supporting the yellow metal on Wednesday. Moreover, political uncertainty surrounding the outcome of last week's historic UK-EU referendum also benefitted the safe-haven appeal of the precious metal.

Thursday's dip could be attributed to a rebound witness in the greenback. However, any further declines might be limited on the possible risk associated with UK's plan to end its membership with the European Union. 

From technical perspective, this week's move could be seen as consolidation phase after Friday's big up-surge, pointing to possible resumption of the metal's near-term bullish momentum.

Technical levels to watch

From current levels, $1300 level remains immediate support to defend, which if broken seems to trigger a near-term corrective move initially towards $1275 intermediate support and eventually towards 50-day SMA support, currently around $1260 region.

On the flip side, momentum above $1325-30 immediate resistance should assist the metal to resume its bullish momentum and head towards retesting Friday's swing high resistance near $1358. Strong buying interest above $1358-60 seems to boost it further towards 2014 yearly highs resistance near $1390-95 area.