Gold settled in negative territory as uncertainty over Greece's future saw market participants move to cash ahead of the weekend.
Greece's struggle to avoid a sovereign-debt default was kicked into high gear Friday, after European leaders withheld approval for a second bailout, demanding proof of the country's commitment to austerity.
The Greek Parliament must approve the new budget-cutting measures in order to receive €130 billion ($172.72 billion) in rescue funds.
Bullion posted a second straight weekly loss, as a lack of concrete steps to avert a ruinous Greek default more than offset a rally earlier this week fueled by the U.S. Federal Reserve's long-term outlook for near-zero interest rates.
Gold's losses were limited as liquidity improved a day after the biggest operator of U.S. futures exchanges, CME Group, lowered trading margins for a range of commodities contracts including gold, Silver and platinum.
Risk aversion drove down equity markets and industrial commodities such as Crude Oil and copper, as investors favored safe-haven U.S. Treasuries, sending the dollar higher against the euro.
Now technically market is trading in the range as RSI for 18days is currently indicating 53.92, where as 50DMA is at 28012.3 and Gold is trading above the same and getting support at 28226 and below could see a test of 28192 level, And resistance is now likely to be seen at 28289, a move above could see prices testing 28318.
Trading Ideas:
Gold trading range for the day is 28192-28318.
Gold settled dropped as uncertainty over Greece's future saw market participants move to cash ahead of the weekend
Greece's struggle to avoid a sovereign-debt default was kicked into high gear Friday
SPDR gold trust holdings gained by 0.31 tonnes to 1278.65 tonnes.
Courtesy: Kedia Commodities
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