Gold sits at near 4-month tops amid weaker USD

Gold traded with a positive bias for the third consecutive session and is currently placed at near 4-month tops, around the $1328-30 region.

The US Dollar remained under some pressure following a hawkish assessment of the ECB's monetary policy meeting minutes, released on Thursday, and had been one of the key factors underpinning dollar-denominated commodities - like gold.

Even the prevalent risk-on environment, which tends to dent demand for traditional safe-haven assets, also did little to stall the precious metal's ongoing strong up-move from near 5-month lows touched on Dec. 12th.

Meanwhile, a fresh wave of a strong upsurge in the US Treasury bond yields seems to be the only factor that could keep a lid on any additional up-move for the non-yielding yellow metal. 

Even at current levels, the commodity would end on a positive note for the fifth consecutive week as traders now look forward to important US macro releases - the latest inflation figures and monthly retail sale for some fresh impetus. 

Technical levels to watch

Immediate resistance is pegged near $1332-33 area, above which the metal could head towards $1339 intermediate hurdle before eventually darting towards an important barrier near the $1348-50 region.

On the flip side, $1323-22 zone now seems to protect the immediate downside, which if broken might prompt some additional profit-taking slide back towards $1312 area en-route $1308-06 support.
 

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