Gold keeps red within three-day old trading range, US GDP and Fedspeak eyed

Gold traded with mild bearish bias and prolonged its consolidative price-action within three day old trading range, below one-month high reached at the start of the week.

Currently hovering around $1250 region, the precious metal is being weighed down by a stronger greenback, which remains underpinned by Wednesday's hawkish comments from two Fed officials - Chicago Fed President Charles Evans and Boston Fed President Eric Rosengren. In fact, the key US Dollar Index extended its recovery move to reclaim the key 100.00 psychological mark and is has been one of the important factors denting demand for dollar-denominated commodities - like gold.

Meanwhile, the prevalent cautious sentiment around global financial markets, also supported by a retracement in the US treasury bond yields, was seen supporting the precious metal's safe-haven appeal and has resulted into a range-bound, subdued price action.

Next in focus would be the final revision of the US GDP numbers for the fourth quarter of 2016, which would grab the spotlight during early NA session. Apart from the growth figures, speeches from couple of FOMC members - Dallas Fed President Robert Kaplan and San Francisco Fed President John Williams might also influence demand for the non-yielding yellow metal. 

Technical levels to watch

A follow through retracement below $1246-45 immediate support is likely to drag the commodity back towards $1235-34 support area with some intermediate support near $1240-39 area. On the upside, momentum above $1254-55 zone might continue to confront strong resistance at the very important 200-day SMA near $1260 region, above which the metal seems all set to extend its upward trajectory towards its next major resistance near $1275 level.