Gold: $ 1350 mark tested ahead of BOE

The retreat in the yellow metal from multi-week top gains further traction in the European session, now pushing the spot to lows near $ 1350 levels.

Gold awaits BOE verdict

Currently, gold trades -0.36% lower at 1351, recovering slightly from session lows struck at 1349.09. The bullion dives deeper in the red during the European hours, suffering on the back of a solid European stocks rally, as markets anticipate the BOE to soon join the global easing.

Meanwhile, ongoing positive momentum around the greenback also collaborates to the sell-off in gold prices. Analyst at INTL FCStone noted, "We remain constructive on gold, at least going into Thursday's session where the BOE's expected easing could give the precious metal a bit of a lift."  

Gold Technical Levels                                   

The metal has an immediate resistance at 1367.30 (3-week highs) and 1370 (round number). Meanwhile, the support stands at 1340 (10 & 20-DMA) below which doors could open for 1328 (Jul 29 low).