Gold faces rejection near $1150 level

Gold once again failed to clear $1150 immediate strong barrier and retreated from highs, albeit has held in green for the fourth consecutive session.

Currently trading around $1145 level, growing prospects of faster US economic growth and higher inflation continues to underpin the US Dollar and has been the key factor exerting some selling pressure around the yellow metal. Moreover, improving investor risk-appetite, as depicted by recovery in European equity markets, was also seen weighing on the precious metal's safe-haven appeal. 

In absence of any major economic releases, until next week, the broader market risk sentiment and US Dollar price dynamics would be key determinants of the metal's move. Meanwhile, the incoming US economic data would help investors to gauge possibilities and timing for next Fed rate-hike action and hence, next week's NFP data now becomes the next big fundamental driver for the commodity's next leg of directional move.

Technical levels to watch

Retracement back below $1144-43 immediate support is likely to drag the metal back below $1140 level, towards its next support near $1137 below which the commodity is likely to head back towards $1125 support area. On the upside, $1150 level remains immediate strong hurdle, which if cleared decisively is likely to trigger a short-covering rally towards $1159-60 resistance, en-route $1165 strong barrier.