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· Gold prices rebounded on Friday from a sharp decline in the previous session, while investors awaited U.S. economic growth data due later in the day that could provide clues about the Federal Reserve’s monetary policy meeting.

Spot gold was up 0.2% at $1,417.55 per ounce, as of 0130 GMT.

The metal has lost 0.5% so far this week, putting it on track for its first weekly decline in three.

U.S. gold futures edged 0.2% higher to $1,417.10 an ounce.

· Gold fell on Thursday after data showed that weekly U.S. jobless claims number fell to a three-month low last week, pointing to strength in the labor market, while new orders for key U.S.-made capital goods surged 1.9 % in June.

· Market participants are now looking ahead to the U.S. central bank’s July 30-31 monetary policy meeting where it is expected to trim its interest rate by at least 25 basis points.

· Meanwhile, against a basket of six major currencies, the dollar index was relatively unchanged after hitting a two-month high in the previous session.

· The ECB signaled its intention to explore monetary easing, but left interest rates unchanged, and bank President Mario Draghi struck a more upbeat tone on the economy than investors expected

· Britain has started sending a warship to accompany all British-flagged vessels through the Strait of Hormuz, a change in policy announced on Thursday after the government previously said it did not have resources to do so.

· U.S. Secretary of State Mike Pompeo said in a television interview on Thursday that he would go to Iran for talks if it was necessary, amid the tensions between Tehran and Washington.

· SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.36% to 819.32 tonnes on Thursday from 822.25 tonnes on Wednesday.

· Gold technical analysis: Eyes 50-day MA support after bearish outside day

Gold risks falling to the 50-day moving average (MA) support, currently at $1,406, having created a bearish outside day candle on Thursday.

In Gold’s case, the candlestick has appeared following a pullback from the six-year high of $1,452 and indicates continuation of the correction.

Further, the 14-day relative strength index (RSI) is reporting a bearish divergence and the moving average convergence divergence is printing negative numbers, a sign the bearish momentum is gaining strength.

The yellow metal, therefore, risks falling to the 50-day MA support st $1,406. At press time, Gold is trading at $1,416 per Oz.

Resistances

R3 1,450.59

R2 1,442.1

R1 1,428.25

Supports

S1 1,405.9

S2 1,397.41

S3 1,383.56

Reference: Reuters, FX Street