Gold dips below $4,150 as dollar picks up

Gold is heading lower on a choppy trading session on Friday, weighed by a firmer US dollar amid the risk-averse sentiment.

The precious metal XAUUSD broke below a previous resistance area, at $4,150 at the US session opening, reaching intraday lows near $4,130.

The greenback was trimming some losses on Friday as market sentiment soured with European equity markets in the red, following the track of Wall Street and Asia.

Furthermore, the hawkish comments from Fed officials have prompted investors to pare back hopes of Fed easing in December, which has provided some support to the US dollar.

Below $4,150 (November 11 high, Thursday’s low), the next support level is at the $4,100 area, where the November 11-12 lows meet the trendline support from early November lows. Further down, a previous resistance area at $4,050 (October 31 highs) will come into focus.

Immediate resistance is at the daily high of $4,210, ahead of Thursday’s high, near $4,245. Bulls would need to break above these levels to resume the upside trend and shift their views towards the all-time highs around $4,380 (the highs of October 20 and 21).

Gold daily charts by TradingView