Gold weaker near 2-week low, seems vulnerable to slide further

After a brief pause on Wednesday, Gold resumed its near-term downward trajectory and now seems all set to record first weekly decline in the previous three.

Currently trading below $1315, the yellow metal failed to benefit from Thursday's release of disappointing US monthly retail sales figures for August, which dampened expectations of a Fed rate-hike action next week, and recorded losses for sixth session in the previous seven to hit a two-week low level of $1309. 

Moreover, resumption of stability in equity markets also failed to boost demand for traditional safe-haven assets and continued exerting selling pressure around the precious metal. 

Later during NA trading session, the release of US CPI and Prelim UoM Consumer Sentiment might provide short-term trading opportunities but major trend decided would be next week's BOJ and Fed monetary policy meetings, which would have influence on the US Dollar and eventually drive dollar-denominated commodities - like gold. 

Technical levels to watch

From current levels, the commodity remains vulnerable to extend its near-term downslide towards testing 100-day SMA support near $1305 region with intermediate support at two-week low near $1309 level. A follow through selling pressure below 100-day SMA support would open room for continuation of the metal's near-term downward trajectory.

Meanwhile on the upside, any recovery attempts now seems to confront immediate resistance near $1318 level, above which the rebound could get extended further towards an important resistance near $1325 level.