Gold turns positive, on track for weekly gain

Gold prices recovered losses to trade marginally positive on the day around $1240/Oz levels after Fed’s Dudley said dollar exchange rate could affect Fed’s rate decision.

Second weekly gain

The metal is poised to end higher for the second week. Prices were trading on a weaker footing a few minutes back before Fed’s Dudley indirectly called USD strength as a hurdle in Fed’s rate hike path.

Despite having recovered off lows, the metal is struggling to extend gains in the positive territory as a sharp rise in oil and the resulting risk-on in equities is restricting the safe haven demand for the metal.

Gold Technical Levels

The immediate hurdle is noted at $1232 (hourly 50-MA), under which prices could drop to $1216.52 (Apr 6 low). On the other hand, a break above $1239.23 (daily high), above which prices could target $1244.12 (Mar 30 high).