Gold holding steady closer to over 3-month highs

Haresh Menghani FXStreet

Gold seesawed between tepid gains and minor losses closer to last week's over three-month tops.

Currently hovering around $1240 region, the precious metal gained some traction on Friday and seems all set to end on a positive note for the third consecutive week.

Sliding US treasury bond yields and negative trading sentiment surrounding equity markets points to a slight deterioration in investors' risk appetite and is supporting the precious metal's safe-haven demand.

However, a modest greenback recovery, with the key US Dollar Index placed at daily tops near 100.70 region with a gain of around 0.25%, has put a lid on the metal's sharp rebound from 100-day SMA support touched on Wednesday. A stronger greenback tends to dent demand for dollar-denominated commodities - like gold.

In absence of any major economic releases from the US, broader market risk sentiment and the US Dollar price-action would remain key determinants of the metal's movement on Friday.

Technical levels to watch

From current levels, multi-month highs near $1245 region is likely to act as immediate resistance above which the metal seems all set to surpass $1250 hurdle and aim towards testing the very important 200-day SMA resistance near $1260-62 region.

On the downside, weakness below $1235 level could get extended towards $1230 level below which the commodity seems to break below $1225 intermediate horizontal support and head back towards 100-day SMA support near $1217 region.

1. R3 1257.10
2. R2 1245.30
3. R1 1239.40
PP 1227.60
1. S1 1221.70
2. S2 1209.90
3. S3 1204.00

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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