Gold remains capped at $1375, reverses back to $1362

Gold continues to struggle in sustaining its move above $1375 resistance and is now retracing back to currently trade near $1362 region.

Last week on Friday, the metal recovered sharply despite of impressive headline NFP print as market participants remained skeptic of any further Fed rate-hike in 2016. On Monday, global risk-on sentiment failed to assist the commodity to build on to its Friday's sharp recovery and is seen denting the safe-haven demand of the precious metal. 

Going forward, a slew of important global economic releases / events, especially Thursday's BOE monetary policy decision would provide fresh impetus for determining the near-term momentum of the yellow metal.

From technical perspective, the commodity is facing stiff resistance at $1375 level, marking 61.8% Fibonacci expansion level of Brexit-led sharp up-swing and subsequent retracement. However, a short-lived corrective move points to inherent strength of the prevailing bullish momentum. 

Technical levels to watch

From current levels, $1360-58 area remains immediate support on the downside. This is followed by Friday's swing lows support near $1335-33 zone, below which the metal seems vulnerable to extend its near-term corrective move towards its next major support near $1310 level. On the flip side, momentum above $1375 strong resistance now seems to pave way for an immediate up-move towards $1390 before heading further beyond $1400 handle, towards testing 100% Fibonacci expansion level resistance near $1410 region.