Gold hangs near weekly lows, around $1275 level
Gold maintained its offered tone for the third consecutive session and has now erased all of its weekly gains to fresh multi-month tops touched on Tuesday.
Spot extended the retracement move from the vicinity of $1300 mark and is being weighed down by stronger US Dollar, which tends to lower demand for dollar-denominated commodities - like gold.
The yellow metal failed to find any support from fresh political turmoil steaming out of the verdict of the UK snap general election, pointing to possibilities of a hung parliament. The ruling Conservative party failed to keep its parliamentary majority in Thursday’s general election and now seems to have raised concerns over Brexit negotiations.
• UK election: Early thoughts on Brexit implications - ING
Meanwhile, investors were also relived after former FBI Director James Comey’s public testimony to the Senate Committee offered little surprise to spark further political turmoil in the US and led to overnight fall in the precious metal.
• US: Comey opens a window into the heart of Trump - AmpGFX
Moreover, positive trading sentiment around equity markets also did little to extend any support to traditional safe-haven assets and stall the commodity's slide back closer to the weekly lows support near $1270 level.
In absence of any major market moving economic releases from the US, broader market risk sentiment would remain an exclusive driver of the metal's movement on the last trading day of the week.
Technical levels to watch
A follow through selling pressure below weekly lows support near $1272-70 region, the commodity is likely to accelerate the slide towards $1261 horizontal support before breaking through $1250 level and eventually heading towards testing the very important 200-day SMA near $1242-40 region.
On the upside, $1281-82 region now seems to have emerged as immediate resistance, above which the metal is likely to aim back towards multi-month highs resistance near $1294-95 area and make a fresh attempt to reclaim the $1300 psychological round figure mark.