Gold holding steady closer to over 3-month highs
|Gold seesawed between tepid gains and minor losses closer to last week's over three-month tops.
Currently hovering around $1240 region, the precious metal gained some traction on Friday and seems all set to end on a positive note for the third consecutive week.
Sliding US treasury bond yields and negative trading sentiment surrounding equity markets points to a slight deterioration in investors' risk appetite and is supporting the precious metal's safe-haven demand.
However, a modest greenback recovery, with the key US Dollar Index placed at daily tops near 100.70 region with a gain of around 0.25%, has put a lid on the metal's sharp rebound from 100-day SMA support touched on Wednesday. A stronger greenback tends to dent demand for dollar-denominated commodities - like gold.
In absence of any major economic releases from the US, broader market risk sentiment and the US Dollar price-action would remain key determinants of the metal's movement on Friday.
Technical levels to watch
From current levels, multi-month highs near $1245 region is likely to act as immediate resistance above which the metal seems all set to surpass $1250 hurdle and aim towards testing the very important 200-day SMA resistance near $1260-62 region.
On the downside, weakness below $1235 level could get extended towards $1230 level below which the commodity seems to break below $1225 intermediate horizontal support and head back towards 100-day SMA support near $1217 region.
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