Gold capped below 50-DMA in Asia, set for weekly drop

By FXStreet Gold stalled its selling spiral in the Asian trades this Friday, although remains poised to book first weekly loss in three weeks as broad based US dollar advance continues to weigh on the metal.

Gold recovers from $ 1225 levels

Currently, gold trades 0.08% higher at fresh session highs of 1230.52, recovering from session lows struck at 1225.29. The bullion recovers entire losses and flips to gains in mid-Asia as a slew of upbeat Chinese data refuelled expectations of improving demand for gold from the world’s top yellow metal consumer.

Moreover, mixed sentiment on the Asian equities ahead of the oil producers’ meeting in Doha this Sunday, also underpinned the safe-haven bids for the bullion. While weaker US retail sales, PPI and CPI data continue to weigh on the Fed rate hike prospects, and help keep the downside capped.

Moving on, markets now await a string of US economic releases due later in the day for further momentum on the dollar priced-in precious metal.

Gold Technical Levels

The metal has an immediate resistance at 1233.64 (5-DMA) and 1240 (round number). Meanwhile, the support stands at 1225/23 (previous lows) below which doors could open for 1220 (psychological levels).
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Source:: FX Street