Gold headed for first weekly gain since Nov.

Gold reversed majority of its daily gains to a three-week high level of $1163 and has now turned absolutely flat from yesterday's closing level.

Currently trading around $1158 region, the precious metal lost its upside momentum amid renewed greenback buying interest, with the overall US Dollar Index bouncing-off two-week lows touched ahead of Tokyo open on Friday. 

Meanwhile, subdued trading action surrounding European equity markets has failed to provide any impetus for the yellow metal's safe-haven appeal amid ultra thin market liquidity conditions.

Earlier on Friday, the metal rose to a three-week high amid thin holiday trade and broadly weaker greenback, which tends to benefit dollar-denominated commodities - like gold. 

Ahead of extended New Year's weekend, trading activity is likely to remain subdued as most market participants still away for year-end holidays. Nevertheless, the commodity is now set to post first weekly gain and snap post-US election losing streak for seven consecutive weeks. 

Technical levels to watch

A follow through retracement below $1157 (session low) is likely to get extended towards $1150 support area below which the commodity would be exposed to test previous resistance, now turned support near $1141-40 area. On the upside, immediate resistance is pegged near $1165 level, which if cleared has the potential to continue lifting the metal initially $1170 intermediate resistance and eventually towards its next major hurdle near $1183-85 region.