Gold clings to gains above $1350 as USD remains on back-foot

Intense selling pressure around the greenback is helping dollar-denominated commodities, with Gold holding on to its strong gains above $1350 level.

In the aftermath of last week's strong NFP print, the yellow metal dropped to $1330 level on Monday. Since then, the precious metal has managed to stage a strong recovery amid broad based US Dollar sell-off. Diminishing prospects of an eventual Fed rate-hike in 2016 is weighing heavily on the buck, as measured by the overall US Dollar index that has dropped 0.64% to 95.50. 

Adding to this, across the board weakness in equity markets is driving investors towards perceived safe-haven assets and providing an additional boost to gold prices. 

Going forward, in absence of any major economic releases, broader sentiment surrounding the US Dollar and equity market would provide further momentum for the precious metal.

Technical levels to watch

On the upside, $1359-62 region seems to act as immediate resistance ahead of post-Brexit swing high near $1370-75 region. Meanwhile, $1350 seems to protect immediate downside, below which the commodity could drop to retest 20-day SMA support near $1337 region.