Gold: Sidelined in Asia after rejection at 50-day MA

• Gold is lacking a clear directional bias in Asia and is sidelined around $1,475.
• The metal failed to close above resistance at $1,475 on Wednesday despite weak US data. 

Gold is trading in a sideways manner around $1,475 per Oz in Asia, having failed to close above key resistances on Wednesday. 

The yellow metal had risen to a high of $1,484 during the US trading hours, possibly in response to the dismal US data. The US ISM non-manufacturing index fell to 53.9 in November, from October's 54.7. 

Meanwhile, the ADP National Employment data showed the private sector added just 67,000 jobs in November. The additions were was only about half the number expected. 

The metal, however, failed to hold above the 50-day average at $1,482 and the Nov. 20 high of $1,478, as the Dollar Index (DXY), gold's biggest nemesis, recovered from the post-data low of 97.43 to 97.60. 

Also, the US stocks picked up a bid and the Dow Jones Industrial Average (DJIA) gained 147 points or 0.53% on the US-China trade optimism, weakening the haven demand for gold. 

The failed breakout has opened doors for a pullback to the ascending 5-day moving average (MA) at $1,470. A strong bounce from there would reinforce the immediate bullish setup

A re-test of the 50-day MA resistance at $1,482 cannot be ruled out, as the DXY is flashing red at press time. The futures on the S&P 500 are also struggling to extend the overnight rally. 

Technical levels