Gold recovers early losses, turns higher at $1338

After an initial mild retracement to $1334, Gold recovered its lost ground and resumed with its near-term bullish momentum to currently trade with minor gains at a fresh session high level of $1338.

Earlier during Asian session on Friday, a tepid greenback recovery was seen weighing on dollar-denominated commodities - like gold. As the day progressed, the prevalent risk-off sentiment in European equity markets boosted the safe-haven appeal of the yellow metal and assisted it to resume with its bullish break-out momentum above 50-day SMA. 

The precious metal traded higher for the fifth consecutive day and is now inching closer to a two-week high, touched on Thursday amid broad based US Dollar sell-off led by disappointment from the Federal Reserve's monetary policy stance.

In absence of fresh fundamental trigger, the metal would continue to be driven by investors' risk appetite and US Dollar price-action.

Technical levels to watch

Two-week high near $1343-44 area is likely to act as immediate resistance and is closely followed by a strong resistance around $1350 level. A follow through buying interest above $1350 resistance should pave way for continuation of the upward trajectory towards $1365 resistance area.

On the flip side, 50-day SMA near $1330 region now seems to protect immediate downside and weakness below 50-day SMA support is likely to be limited by support at $1326-25 area.