Gold remains on track for its first weekly rise in a month
• Gold set to end with gains of over 1.0% for the week.
• USD weakness/safe-haven demand remains supportive.
• Surging US bond yields, the only factor capping gains.
Gold struggled to gain any follow through traction on Friday and traded with a mild negative bias through the early NA session.
Currently hovering around the $1284 region, still within striking distance of 3-week highs touched overnight, surging US Treasury bond yields seems to be the only factor prompting some profit taking around the non-yielding commodity.
Meanwhile, persistent US Dollar selling bias, led by the latest disappointment over the US tax reforms plan, was seen lending some support to dollar-denominated commodities - like gold.
This coupled with weaker trading sentiment around equity markets remained supportive of the precious metal's safe-haven appeal and helped limit deeper losses.
A relatively thin US economic docket, highlighting the release of Prelim UoM Consumer Sentiment Index, is unlikely to trigger any meaningful moves.
Nevertheless, the yellow metal remains on track to snap three consecutive weeks of losing streak and end the week on a strong note, with gains of over 1.0%.
Technical levels to watch
Immediate downside support remains near the $1281-80 zone, below which the metal is likely to accelerate the slide towards $1275 level en-route $1269 strong horizontal support.
On the upside, momentum above the $1287-88 region now seems to pave the way for an extension of the commodity's up-move towards $1295 level ahead of the $1300 handle.