Gold drifts lower ahead of US GDP
|Gold continued with its struggle to move back above the very important 200-day SMA and drifted lower on Friday to currently trade around $1267 region ahead of US growth numbers.
Despite of Thursday's disappointing durable goods orders, the precious metal failed to gain traction and retraced from higher level as market participants remained convinced that the Fed would eventually move towards raising interest-rates at its December meeting. Increasing prospects of an higher interest rate in the US is weighing on non-yielding metal, which although remained flat w-o-w but has lost around 3.5% month-to-date.
The advance version of US Q3 GDP print will take center stage on Friday and would determine the next leg of directional move for the US Dollar, eventually providing fresh impetus for dollar-denominated commodities - like gold. The preliminary Q3 GDP is expected to show the US economy recorded an annualized growth of 2.5%, sharply higher from 1.4% registered in the previous quarter.
Technical levels to watch
From current levels, sustained weakness below $1265 horizontal support should accelerate the slide immediately towards $1261 below which the metal seems vulnerable to head back towards $1250 important support.
On the upside, 200-day SMA near $1272 region remains immediate resistance, which if cleared is likely to lift the commodity towards $1280 resistance en-route $1300 psychological mark.
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