Gold futures on Comex are seen gathering pace gradually as we progress towards the early European trades, and now look to test 1250 amid broad based USD softness.
Gold back above hourly 50-SMA at 1235.46
Currently, gold trades 0.10% at 1240, testing daily highs posted at 1240.70. The yellow metal edges higher on the final trading day of the week, despite the ongoing risk-on rally in the Asian equities, mainly on the back of a sharp drop in the US dollar against its major competitors. The USD index now drops -0.30% to 97.15 levels.
Besides fundamentals, the bullion is driven by technicals as well, with the daily charts displaying ‘golden cross’ formation, where the 50-DMA beaches the 200-DMA from below.
As for today’s trade, markets prefer to remain on the side-lines and refrain from placing big bets ahead of the crucial US Q4 prelim GDP estimate, which is likely to have major impact on the USD priced-in precious metal.
Gold Technical Levels
The metal has an immediate resistance at 1250/1250.10 (psychological levels/ Feb 24 High) and 1260.80 (Feb 11 High). Meanwhile, the support stands at 1232.20 (daily low) below which doors could open for 1229 (5-DMA).
(Market News Provided by FXstreet)
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