Gold edging higher above 200-DMA

The precious metal was able to rise above the significant 200-DMA even though it closed the day below that level on Thursday. After rising to $1250.57, the metal gave back some of its gains and is now at $1249.60, up 0.51% on the day.

Directionless despite fluctuations

Despite today's effort, the XAU/USD is set for a negative weekly close unless it moves above $1253 at the end of the day. The US Dollar Index has been moving sideways around 100.20 in the last couple of hours as the market thins out, making it harder for the yellow metal to make a final push. However, compared to last four weeks, Gold stayed in a tight range and struggled to make a decisive move. On the one hand, the greenback was able to correct the drop witnessed during the first half of the week, on the other hand, the market sentiment didn't allow a sharp fall.

Strong comeback

On a monthly basis, for the first time since 2013, the XAU/USD will be recording gains when the session comes to an end. After slipping to $1194 on March 10, the yellow metal made an impressive comeback and gained more than $50 as the Fed adopted a more dovish tone despite a 25 bp rate hike on March 15. 

Commodity markets remained well bid - ANZ

Gold: Expect Q2-2017 to be the strongest quarter for prices – Standard Chartered

Levels to consider

To the downside, supports could be found at $1246 (200-DMA), $1241 (Mar. 24 low) and $1232 (50-DMA). On the upside, resistances are aligned at $1250 (Mar. 29 high), $1258 (Mar. 28 high) and finally $1261 (Mar. 27 high).