Gold hits fresh 2-week lows as USD demand returns

Gold extends its 4-day declines and remains on track to book second consecutive weekly loss, as demand for the greenback regains poise across the board ahead of the US news flow.

Gold eyes 50-DMA at $ 1170

Currently, gold drops -0.53% to trade near fresh two-week lows of $ 1183, moving further away from $ 1200 barrier. Gold remains heavily offered as the greenback resumes its bullish momentum, after a minor-correction seen overnight, while the treasury yields also pick-up some strength across the time horizon.

Moreover, higher Asian indices on Trump’s reflation trades also curb the demand for gold as an alternative investment asset. While upbeat US Markit services PMI data, which expanded at the fastest pace in more than a year, is likely to keep the USD demand underpinned ahead of the US durable goods, GDP and consumer sentiment data slated for release later today.

Comex Gold Technical Levels                                  

The metal has an immediate resistance at 1190 (round number) and 1196.45 (20-DMA). Meanwhile, the support stands at 1180 (2-week low) below which doors could open for 1170 (50-DMA).