Gold drops below $ 1340 ahead of BOE

A better risk tone persistent almost through the Asian hours dragged gold sharply lower, as focus now turns towards the BOE interest rate decision for further momentum.

Gold capped by 5-DMA

Currently, gold trades -0.61% lower at $ 1337.52, testing lows reached at 1336.77 last hour. Gold corrects lower on Thursday, after having risen 1% a day before, as higher Asian stocks dampened the demand for the safe-haven.  

All eyes now remain on the BOE monetary policy outcome, with markets pricing in a 25bps rate cut today. The BOE decision is likely to trigger massive volatility and could have significant impact on the dollar priced-in gold.

Gold Technical Levels                                   

The metal has an immediate resistance at 1347.43 (5-DMA) and 1353.70 (1h 200-SMA). Meanwhile, the support stands at 1327.54 (Jul 13 low) below which doors could open for 1324.73 (20-DMA).