Gold price clings to gains, around $1355 ahead of key US economic releases

New York (Jan 26)  Gold held on to its modest gains through the mid-European session and is currently trading around the $1355 region ahead of the US macro data.

A fresh wave of US Dollar selling pressure underpinned demand for dollar-denominated commodities and helped the precious metal to recover part of previous session's late reversal slide, led by "strong dollar" comments by the US President Donald Trump.

Adding to this, the prevalent cautious trading sentiment across European equity markets was also seen supporting traditional safe-haven assets and collaborated to the yellow metal's steady rise on the last trading day of the week.

Further gains, however, remained capped amid a goodish pickup in the US Treasury bond yields, which tends to drive flows away from the non-yielding commodity.

Moreover, traders also seemed to refrain from placing aggressive bets ahead of today's important US macroeconomic releases - advance Q4 GDP growth figures and durable goods orders data, which would be looked upon for some fresh directional impetus.

Technical levels to watch

Immediate resistance is pegged near $1358 level, above which the commodity is likely to head back towards $1366 area (yesterday's swing high) en-route August 2016 highs resistance near the $1374-75 region.

On the flip side, retracement back below $1350 level is likely to accelerate the slide towards $1340 horizontal zone with some intermediate support near the $1346 level.

FXstreet