Gold holds in positive territory for third straight session

After an initial dip to $1225 region, Gold regained traction and turned positive for the third consecutive session. 

A less hawkish Fed view on the pace of monetary policy tightening, resulting into a broad based US Dollar sell-off has been supportive of the precious metal's strong recovery move from sub-$1200 level. A continuous slump in the greenback was seen boosting demand for dollar-denominated commodities and lifted the yellow metal to nearly two-week tops on Thursday. 

With the greenback entering a bearish consolidation phase, a mildly cautious investor sentiment supported the metal's safe-haven demand and collaborated to Friday's up-move. However, a modest recovery move in the US treasury bond yields helped restrict further up-move for the non-yielding metal. 

With the commodity all set for its first weekly rise in previous three, investors would now scrutinize news coming out of the G20 meeting for some fresh impetus. Also in focus would be German Chancellor Angela Merkel's first meeting with the US President Donald Trump. 

Technical levels to watch

Momentum above $1230 level might continue to confront resistance near $1234-35 area, which if cleared now seems to pave way for continuation of the metal's upward trajectory towards its next hurdle near $1247-50 region. 

On the downside, follow through retracement below $1225-24 area might prompt further profit taking and drag the commodity towards $1217-16 intermediate support ahead of $1210 strong support.