Gold dips in Asia as S&P 500 futures rise

• Gold trims overnight gains as S&P 500 futures regain poise.
• Asian stocks report losses, still relatively less gloomy.

Gold (XAU/USD) retreated from the overnight high of $1,345 to $1,337 as S&P 500 futures strengthened 0.4 percent, signaling the US stocks are likely to regain poise following Monday's sell-off.

China's retaliation to US tariffs signaled the trade tensions are escalating and pushed the US stocks lower.  The Dow Jones Industrial Average (DJIA) dropped 1.9 percent and the broader S&P 500 index fell 2.2 percent. Meanwhile, Amazon shares dropped 5 percent, dragging the tech-heavy Nasdaq index down with it.

Consequently, traditional safe-haven assets like gold found takers. However, the flight to safety seems to have stalled in Asia, courtesy of the positive action in the S&P 500 futures. Also, the Asian stocks are flashing red, but losses are moderate. For instance, China's Shanghai Composite is down 0.6 percent and South Korea's Kospi has shed 0.47 percent.

That said, the yellow metal may revisit the $1,345 and could possibly break higher if the S&P 500 futures surrender gains and drop into the red.

Gold Technical Levels

A break above $1,345 (previous day's high) would expose resistance lined up at $1,357 (March 27 high) and $1,366 (Jan. 25 high). On the other hand, a move below $1,329 (50-day MA) could yield a pullback to $1,316 (100-day MA) and $1,310 (March 20 low).