Gold extends bullish trajectory, climbs to fresh 3-1/2 month high
|Gold continued gaining traction through Asian session on Friday and extended its up-move further beyond $1250 level to hit fresh 3-1/2 month highs.
Fading expectations of a Fed rate-hike action in March, against the backdrop of uncertainty over the US President Donald Trump's fiscal policies, continues to weigh on the US Dollar and boost demand for dollar-denominated commodities - like Gold.
The ongoing slide in the US Treasury bond yields reaffirms market expectations that the Fed is more likely to stand pat in March and is supportive of the bid tone surrounding the non-yielding yellow metal.
Gold also benefitted from safe-haven demand amid mildly cautious trading sentiment surrounding equity markets.
In absence of any major market moving economic releases on Friday, persistent US Dollar selling should continue boosting the yellow metal further towards testing the very important 200-day SMA hurdle.
Technical levels to watch
Currently trading around $1253 level, immediate resistance is pegged near $1258, which is followed by strong hurdle near $1262-63 region (200-day SMA). On the flip side, $1250-48 zone now seems to protect immediate downside, which if broken could trigger a profit taking slide back towards $1241-40 horizontal support.
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