Gold edges lower, weaker below $1330 on stronger USD
• Reviving USD demand prompts some fresh selling.
• Risk-on mood adds to the downward pressure.
• On track for its third weekly decline in the previous four.
Gold came under some renewed selling pressure on Friday and has now eroded a major part of previous session's goodish recovery move from over one week tops.
A fresh wave of US Dollar selling pressure on Thursday, triggered by sliding US Treasury bond yields, extended some support and helped the precious metal to register a goodish rebound from over one-week lows.
The USD demand, however, revived strongly on Friday and prompted some fresh selling around dollar-denominated commodities - like gold. Adding to this, improving risk appetite, as depicted by positive trading sentiment around equity markets, further dented the precious metal's safe-haven demand and collaborated to the offered tone.
Later in the day, traders would now take cues from Fedspeak, which might influence Fed rate hike expectations and eventually provide some fresh impetus for the non-yielding yellow metal. In absence of any major market moving US economic data, the commodity remains on track for yet another weekly decline, marking it's third in the previous four.
Technical levels to watch
Immediate support is pegged near $1323 area, below which the commodity now seems to break below $1320 level and head towards its next support near the $1310-07 region. On the upside, $1332 level now seems to have emerged as immediate resistance, which if cleared could trigger a short-covering bounce towards $1338 hurdle en-route $1344-45 supply zone.
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
