Gold hits fresh weekly high ahead of ISM PMI release
|Gold remained on the front-foot on Friday, with the precious metal rising to currently trade at $1336, close to fresh weekly high level of $1338 touched earlier.
Following a minor corrective move on Tuesday, the black gold resumed its bullish momentum, rising for third consecutive day and headed for the highest weekly close in nearly two-years. The yellow metal has been rising despite of the prevailing risk appetite across global financial market. A broadly weak US Dollar seems to contribute towards the ongoing bullish momentum.
The precious metal is also gaining traction on prevailing uncertainty around the economic implication of last week's historic Brexit referendum. Adding to this, hints of additional monetary easing measured by the Bank of England and ECB coupled with fading prospects of Fed rate-hike, is further supporting the safe-haven appeal of the precious metal.
Market participants now look forward to the US ISM manufacturing PMI data that would provide further direction to the greenback and eventually drive gold prices.
Technical levels to watch
From current levels, the metal seems more likely to extend its momentum immediately towards $1350 above which it could easily surpass last week's, Brexit-led swing high of $1358 and head towards $1370 resistance marking 61.8% Fibonacci expansion level of last week's sharp up-move and subsequent retracement.
Meanwhile on the downside, $1325 now becomes immediate support to watch for. Break below this immediate support now seems to drag the metal back towards weekly lows support near $1305 and eventually drop to $1300 psychological mark support. A decisive weakness below $1300 mark support would now set-in a short-term corrective move that could drag the precious metal towards 50-day SMA support near $1260 region in the near-term.
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