Gold spikes to weekly highs near $1264, US macro data in focus

After yesterday's brief pause, gold regained traction on Friday and has now jumped back closer to the top end of weekly trading range near $1264 level. 

An extension of the output cut deal by OPEC and other major oil producing nations disappointed market players expecting for a deeper cuts and hence, a sell-off in oil markets triggered a fresh wave of global risk-off trade and boosted the precious metal's safe-haven appeal.

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It, however, remains to be seen if the up-move is sustainable amid growing prospects for an eventual Fed rate-hike move at its June meeting, which tends to weigh on the non-yielding yellow metal.

Nevertheless, the metal could still be headed for its third consecutive weekly gains as focus now shifts to today's important US macro data - preliminary US GDP print and Durable Goods Orders, which would influence the US Dollar and provide some fresh impetus for dollar-denominated commodities - like gold. 

Technical levels to watch

A follow through buying interest beyond $1265 level could accelerate the up-move towards $1268 horizontal resistance, above which the commodity is likely to aim towards testing its next major hurdle near $1275 region. 

On the downside, retracement back below $1259 level now seems to find support near $1255-54 area, which if broken would turn the metal vulnerable to break below $1250 important support and head towards retesting the very important 200-day SMA support near $1244 region.