Gold struggling to extend recovery momentum above $1270

By FXStreet The precious metal’s attempted recovery from day’s through failed to gain momentum despite of higher-than-expected weekly US jobless claims data. The yellow metal, however, has rebounded from session low near $1265 level touched in the last hour to currently trade above $1270 level.

Global risk-on sentiment also seems to hurt Gold prices as even weak US dollar doesn’t seem to assist the precious metal. Although the metal has bounced off 20-day SMA support, touched earlier this week, upside, however, remains capped at $1280 important pivot point.

Going forward, markets would now look ahead to speeches from FOMC members during the NY session, which could assist traders to determine further momentum for the precious metal.

Technical levels to watch

On the immediate upside, $1278-80 area remains immediate resistance to watch for. A clear strength above $1280 is likely to attract fresh bids, lifting the metal to $1287-88 horizontal resistance.

On the flip side, day’s through near $1265-66 zone, followed by 20-day SMA near $1261-60 zone, are key support levels to defend. Failure to hold these support levels seems to increase the metal’s vulnerability to break below weekly lows support near $1257-56 and extend its weakening trend towards $1245-43 region support.
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Source:: FX Street