Gold stalls in Asia following a three-day winning streak

Gold trades lifeless around the resistance at $1327 levels, taking a pause after the 3-day rally, fuelled by falling Fed rate hike expectations.

Falling US short-end yields help Gold

The precious metal climbed higher over the past few days as the short-end yields dived lower after the US non-farm payrolls and more importantly the wage growth figures missed estimates by a wide margin. The drop in the short-end yields suggests falling Fed rate hike bets.

The gold story continues to be a dollar-narrated one, and hence the US ISM Non-Manufacturing data will be keenly eyed by traders.

Technical Levels

Gold needs a break above the recent highs around $1329.84 - $1328.04 to aim for the 50-DMA at 1334.54, above which we have the channel resistance at $1344.27.

On the downside, immediate support is seen at $1323.39 (Aug 24th low), under which the metal may test $1320.01 (26th August low) - $1314.87 (Aug 29th low), and then the support area around $1299.80 (100DMA) - $1301.53(downtrend channel support) could come into play.