Gold remains on track for second consecutive weekly decline
|Gold trimmed some of its early recovery gains but has still managed to hold in positive territory through early NA session.
Global flight to safety, after N. Korea said it might test a hydrogen bomb in the Pacific Ocean, provided an initial boost to the precious metal.
• US Sec of State Tillerson: all options remain if N. Korea executes Pacific test
As the day progressed, strong PMI numbers supported European stocks and drove investors to traditional safe-haven assets and failed to assist the yellow metal to build on its modest recovery move from 4-week lows.
However, persistent US Dollar selling bias, backed by sliding US Treasury bond yields continued underpinning demand for the dollar-denominated/non-yielding commodity.
In absence of any major market moving economic releases, broader market risk sentiment would continue to be a key determinant of the metal's movement through NY trading session.
Nevertheless, the commodity remains track to post its second weekly decline and seems all set for its lowest weekly close in four weeks.
Technical levels to watch
Immediate support is seen near $1290 area, below which the metal is likely to slip towards $1284 horizontal support en-route the $1280 region.
On the upside, any recovery attempts might continue to confront fresh supply near the $1298-1300 region, which if cleared might trigger a bout of short-covering towards $1311 hurdle with some intermediate resistance near $1305-06 zone.
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