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.

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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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