Gold consolidating around 50-DMA after Friday's big up-surge

Gold seems to digest its Friday's big surge and currently seems to consolidate at two-week high level, around 50-day SMA near $1246-47 region. 

The bullion got a breather on Friday after the US employment report showed economy created the fewest number of jobs since September 2010, which nearly eliminates the possibility of a Fe rate hike more in the near-term (June/July). 

The precious metal had remained under pressure throughout the month of May on rising expectations of an imminent Fed rate-hike in June led by comments from FOMC members, including Fed Chair Janet Yellen. Rising interest rates in the US is seen as denting demand for dollar-denominated commodities like gold.

Ahead of the Fed's two-day monetary policy meeting on June 14-15, Fed Chair Janet Yellen would get a last change to provide some insight over the Fed's economic and monetary outlook when she speaks at the World Affairs Council of Philadelphia's luncheon later during NY session. 

In the backdrop of a ending EU referendum vote on June 23 from the UK and the recent slew of weak economic releases from the US, most economists are expecting the Fed to leave interest rates unchanged during June meeting, which is likely to further boost the yellow metal.

Technical levels to watch

Momentum above 50-day SMA resistance, near $1246-47 region, is likely to get extended towards $1265 horizontal resistance, beyond which the commodity seems all set to continue with its upward trajectory towards $1290-92 resistance area and move one-step closer to reclaim $1300 mark.

Meanwhile a reversal from current resistance area might now find immediate support near $1230 level. Weakness below $1230 support is likely to get bought into and hence is likely to be limited by 100-day SMA strong resistance, now turned support, near $1222-20 region.