Gold holds onto 10-DMA support, US GDP eyed

Gold is seen moving back and forth in a $ 3 narrow range, looking for direction amid higher treasury yields and increased nervousness, as we head into the US GDP report due later on Friday.

Gold faces stiff resistance ahead of $ 1271

Currently, Comex gold futures trade modestly flat at 1269.65, meandering near session lows struck previously at $ 1268.50. Gold’s recovery lost steam in the opening trades, sending the rate a tad lower, as sentiment towards the treasury yields remain favorable, which continue to weigh on gold as an alternative investment asset.

Moreover, with a Dec Fed rate hike almost a done deal, markets refrain from placing big bets on the bullion, as gold tends to suffer in a high interest rate environment.

However, the downside remains cushioned in light of firmer physical demand in India on the back of Diwali festivities India is the world's second-largest consumer of gold.

Focus now remains on the US advance GDP report due to be released in the NA session, for fresh hints on the timing of a Fed rate rise.

Comex Gold Technical Levels                                  

The metal has an immediate resistance at 1270 (round figure) and 1274 (Oct 26 high). Meanwhile, the support stands at 1260.30 (20-DMA) below which doors could open for 1250 (round figure).