Gold slump continues, US GDP in focus

Gold remained well offered for the fourth consecutive session and has now dropped to the lowest level since Jan. 11.

A fresh leg of US treasury bond yields, as Trump reflation trade regains momentum, is underpinning the US Dollar's recovery move from Thursday’s 7-week low and denting demand for dollar-denominated commodities - like gold.

Moreover, buoyant investors’ risk-appetite, as depicted by rallying global equity markets, is further weighing on the metal's safe-haven appeal and collaborating to the ongoing slide from two-month highs touched earlier this week. 

Friday's release of the preliminary US GDP print would be looked upon for continuation of the ‘Trump-trade' and hence, remains the next fundamental catalyst for the precious metal's next leg of directional move.

Technical levels to watch

Currently trading around $1184, immediate downside support is pegged at 50-day SMA near $1175 region, which is followed by support at $1170 level. A convincing break below $1170 support would turn the commodity vulnerable to head towards $1155 strong horizontal support with some intermediate support near $1162 region.

On the upside, $1188-90 region now seems to act as immediate resistance above which the metal is likely to head towards $1195 intermediate support before attempting a move towards reclaiming $1200 psychological mark.