Gold up little, around $1275 on weaker USD
• Persistent USD selling lends some support.
• Resilient US bond yields capping gains.
• US ISM manufacturing PMI eyed for fresh impetus.
After yesterday's slump to near three-week lows, gold now seems to have stabilized and held with minor gains through the Asian session on Friday.
A sharp rally in the US Treasury bond yields, supported by mostly in-line core PCE price index, the Fed's preferred inflation gauge, triggered a sharp slide around the non-yielding commodity.
However, a fresh wave of US Dollar selling bias, led by renewed concerns over the fate of the US President Donald Trump's proposed tax cuts, extended some support to dollar-denominated and helped rebound from lows.
A follow-through USD weakness, coupled with a notable slowdown in China's manufacturing activity, as reported by a private survey, was seen lending some additional support to the precious metal.
Despite the supporting factors, resilient US bond yields continued exerting some downward pressure and kept a lid on any meaningful up-move for the yellow metal.
Later during the NA session, the US ISM manufacturing PMI and speeches by influential FOMC member would now influence the metal's movement on the last trading day of the week.
Technical levels to watch
Immediate resistance is pegged near the $1278-79 region, above which the commodity could aim back towards 100-day SMA hurdle near the $1285-86 region. On the flip side, $1270 level now seems to have emerged as immediate support and is followed by support at the very important 200-day SMA near the $1267-66 region.