Gold slips to fresh multi-week lows below $1250 after Dudley's comments
|Gold remained well-offered through early NA session and has now dropped to fresh multi-week lows, below $1250 level.
The latest leg of slide over the past hour or so could be attributed to hawkish comments by New York Fed President William Dudley, which provided a minor boost to the US Dollar and was seen weighing on dollar-denominated commodities - like gold.
• Fed's Dudley: Halting tightening cycle would damage economy
The metal traded with bearish bias for the fourth consecutive session and built on two consecutive week of losses and extended its sharp reversal move from $1300 neighborhood touched during early part of this month.
Last week's hawkish Fed outlook, projecting at least one more rate-hike action in 2017, has been one of the major factors weighing on the non-yielding metal over the past four trading sessions. The metal, however, could find some support from safe-haven demand amid uncertainty around Brexit negotiations.
In absence of any major market moving economic releases, the Fed rate-hike expectations and broader market risk sentiment would continue to act as key determinants of metal's momentum on Monday.
Technical levels to watch
Immediate support is pegged at 100-day SMA near $1247 region, below which the commodity seems vulnerable to extend the downslide towards the very important 200-day SMA support near $1238 region.
On the upside, any recovery move back above $1252 region now seems to confront strong resistance near $1255 region, above which a bout of short-covering could lift the metal back towards $1262 horizontal resistance.
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