Gold hits over 6-month tops, positive equities capping gains
• Renewed US-China trade tensions/global growth fears underpin safe-haven demand.
• The USD remains under some selling pressure and remained supportive of the up-move.
Gold inched higher through the early European session on Friday and is currently placed at over six-month tops, just above $1280 level.
A combination of factors - concerns about slowing global economic growth and renewed US-China trade tensions, underpinned the precious metal's safe-haven demand and remained supportive of the ongoing positive momentum.
In a blow to worsening trade tensions between the world's two biggest economies, the US President Donald Trump was reportedly considering an executive order that would bar US companies from using telecommunications equipment made by China's Huawei and ZTE.
Meanwhile, the partial US government shutdown and fears that a global economic slowdown might spill over into the US kept exerting downward pressure on the US Dollar and provided an additional boost to the dollar-denominated commodity.
Bullish traders seemed rather unaffected by the prevalent positive mood surrounding equity markets, though might turn out to be the only factor capping any strong follow-through up-move amid a rather thin market liquidity conditions.
Later during the early North-American session, the US economic docket, featuring the release of Chicago PMI and pending home sales data, will now be looked upon for some short-term trading impetus on the last trading day of the week.
Technical levels to watch
A follow-through momentum beyond the $1282-83 region could get extended towards $1290 horizontal resistance before the metal eventually darts towards reclaiming the $1300 round figure mark. On the flip side, any meaningful retracement now seems to find immediate support near the $1270-68 region, below which the commodity could fall further towards $1260 horizontal support.