Gold heading back towards 2-week tops near $1230

• Benefiting from mixed Asian equities and a broadly subdued US dollar.
• Upside may be capped by Thanksgiving thin trades and positive Treasury yields.

Gold (futures on Comex) found buyers in Asia once again near the 1227 level, now heading back towards the two-week tops of 1229.70 reached a day before.

The yellow metal remains on the front foot so far this Friday, as the US dollar extends its softness across the board into a third straight session, as markets remain wary over the Fed’s rate hike outlook amid mounting concerns about a potential global slowdown. The US dollar index trades weaker near 96.50 level, looking to test Thursday’s low at 96.32.

Moreover, gold prices derive support from the mixed tone seen on the Asian equities, as the Chinese stocks get sold-off into looming US-China trade concerns and Chinese growth concerns. However, it remains to be seen if the bullion can sustain the upbeat momentum, as positive Treasury yields combined with sowing volumes could limit further upside.

Further, markets may prefer to remain in a wait and see mode ahead of the meeting between the US President Trump and his Chinese counterpart Xi at this month’s G20 summit in Argentina.

Gold Technical Levels