Gold sits near 2-week tops, eyeing a bullish break through 200-DMA
| • Subdued US bond yields offset USD uptick and remain supportive.
• Remains on track for its second consecutive week of gains.
• US data eyed for fresh impetus in pre-holiday trading action.
Gold traded with a mild positive bias for the third consecutive session and hovered just below 2-week highs touched in the previous session.
In a thin pre-holiday trade on Friday, the precious metal is now looking to make a fresh attempt to conquer the very important 200-day SMA. However, a modest pickup in the US Dollar demand might continue to keep a lid on any additional gains for the dollar-denominated commodity.
The greenback gained some positive traction after the US Senate approved a bill to avert a government shutdown and was further boosted by a slump in the shared currency after the preliminary regional election results showed that pro-independence parties in Catalonia kept an absolute majority.
Meanwhile, a subdued action around the US Treasury bond yields remained supportive of the bid tone surrounding the non-yielding yellow metal, which remains on track to log a second consecutive week of gains.
Later during the day, the US economic data - personal income/spending figures for November, along with the Fed's preferred inflation gauge - core PCE price index, Durable Goods Orders, New Home Sales and the Michigan consumer sentiment index, would be looked upon for some short-term trading impetus.
Technical levels to watch
A clear breakthrough 200-DMA barrier near the $1269 region is likely to accelerate the up-move towards $1274-76 supply zone en-route $1285 resistance. On the flip side, weakness below $1265 level now seems to find immediate support near the $1261-60 region, which if broken could prompt some additional profit-taking slide towards $1255 horizontal support.
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