Gold fails to sustain above $1250 for third consecutive session

Gold failed to sustain early up-move beyond $1250 level for the third consecutive session and stalled its recovery move from over 1-month lows touched at the beginning of this week. 

Having posted a session high near $1253 level, the precious metal turned lower and reversed previous session's tepid recovery gains. The ongoing upsurge in the US Treasury bond yields has been one of the key factors weighing on the non-yielding precious metal and keeping a lid on any meaningful recovery.

Even a weaker trading sentiment around European equity markets did little to boost the yellow metal's safe-haven demand and stall retracement from higher levels. The metal has also failed to benefit from persistent US Dollar selling pressure, which tends to extend support to dollar-denominated commodities.

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With the US bond yield dynamics acting as an exclusive driver of the commodity's move through the mid-European trading session on Thursday, the release of final US Q1 GDP print and the usual weekly jobless claims would now be looked upon for some fresh trading impetus during early NA session.

Technical levels to watch

On a sustained weakness below $1244 level, the metal is likely to head back towards retesting the very important 200-day SMA support near $1236 region with some intermediate support near $1240 level.

Conversely, any up-move back above $1250 level might continue to confront fresh supply near $1253-55 region, which if cleared should trigger a short-covering rally towards $1260 horizontal resistance.