Gold struggles to recover, remains under pressure below $1250

Despite the greenback's relentless fall, the XAU/USD pair is having a difficult time gaining traction. As of writing, the pair is trading at $1245, losing $4, or 0.32%, on the day.

The US Dollar Index, which tracks the greenback against a basket of six trade-weighted peers, failed to take advantage of the better-than-expected GDP growth data from the United States and fell to its lowest level since late September at 95.40. As of writing, the index is struggling to pull away from that level and is at 95.43, losing 0.37% on the day.

On the other hand, the precious metal can't find any demand as investors continue to be focused on the European currencies after statements from the ECB Forum on Central Banking this week heightened the expectations that both the ECB and the BoE are looking to tighten their monetary policies. In fact, the XAU is right now losing nearly 1% against the cable and the shared currency. 

Technical outlook

After dropping below the lower arm of the Bollinger Band on the 4-hour chart, the XAU/USD pair made a mild recovery to correct the short-term oversold-ness. $1240 (daily low) followed by $1228 (200-DMA) and $1218 (May 10 low) could be seen as technical support levels. On the upside, resistances locate at $1253.50 (50-DMA), $1259 (Jun. 23 high) and $1270 (Jun. 12 high).