Gold stuck in a narrow trading range around weekly lows

Gold struggled for a firm direction and was confined within $5 narrow trading range on Friday, closer to weekly lows around $1240 area. 

Thursday’s upbeat US GDP growth data helped the key US Dollar Index to recovery back above the key 100.00 psychologically important level and drove investors away from dollar-denominated commodities - like gold. The data underscored solid fundamentals of the US economy and supported expectations of faster Fed rate-tightening cycle, which eventually lifted the US treasury bond yields and further weighed on the non-yielding yellow metal.

On Friday, however, a mildly cautious sentiment around global equity markets extended some support to the precious metal's safe-haven appeal. However, the greenback bullish consolidative phase capped any up-move and has resulted into a range-bounce, subdued price action on the last trading day of the week. 

Later during early NA session, the US economic data would now be looked upon for some fresh impetus. However, speeches by New York Fed President William Dudley and Minneapolis Fed President Neel Kashkari would grab the spotlight and would act as key determinants for the metal's movement during NY trading session.

Technical levels to watch

On a sustained weakness below $1240 level, the commodity is likely to accelerate the slide towards $1234 horizontal support before heading towards its next major support near $1225 area. On the upside, momentum above $1247-48 zone could get extended towards $1254-55 strong resistance, above which the metal is likely to aim back towards clearing the very important 200-day SMA hurdle near $12630 region.