Gold paused six consecutive days of winning streak and eased on Thursday, consolidating its recent gains to 3-week peak.
Currently trading around $1247 region, a modest recovery in the US treasury bond yields supported a tepid US Dollar recovery and was seen weighing on dollar-denominated commodities - like gold. Adding to this, signs of some stability returning in the global equity markets further dented the precious metal's safe-haven appeal and collaborated to a mild retracement from Wednesday's monthly tops.
Further, downslide, however, was limited as investors remained cautious amid uncertainty over Trump administration’s promised pro-growth economic policies and ahead of a key vote on bill to repeal and replace the Affordable Care Act on Thursday.
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Investors on Thursday will also confront speeches from the Fed Chair Janet Yellen and Minneapolis Fed President Neel Kashkari, where a dovish bias would support further gains for the yellow metal.
Technical levels to watch
From current levels, monthly highs near $1251 area remains immediate resistance, which if cleared decisively should lift the commodity back towards the very important 200-day SMA hurdle near $1260 region.
On the flip side, a follow through retracement below $1244 level (session low) now seems to find support near $1239-38 region and is closely followed by a strong support near $1234 level. Only a decisive break back below $1234 important support would negate near-term bullish bias.
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