• Gold prices fell on Thursday as the dollar strengthened, but uncertainty surrounding the impact of Britain's departure from the European Union and the upcoming French elections offered some support.
Spot gold was down 0.2 percent at $1,249.85 an ounce by 0419 GMT.
Gold is witnessing a correction after failing to break above its 200-day moving average around the $1,260 level, analysts said.
• "But prices are not likely to witness a big drop particularly because of the Brexit and French elections as they (are offering) very good support for gold at this time," said Brian Lan, managing director at gold dealer GoldSilver Central in Singapore.
• "The market seemed to take the notification of the article 50 in the UK relatively smoothly, but I suspect the worst is yet to come on that. We'll see how negotiations develop and the market is taking the wait and see approach at the moment," said ANZ analyst Daniel Hynes.
"But certainly, there was a tiny bit of safe-haven buying."
• The dollar was also boosted by Chicago Fed President Charles Evans, who said he was in line with most of his colleagues in supporting further rate hikes this year.
• In other precious metals, spot silver fell 0.4 percent to $18.12 an ounce, after hitting a four-week high of $18.25 the session before.
• Currently, gold drops -0.38% to fresh session lows of $ 1248.50, having failed to sustain at higher levels near $ 1254 region. Gold prices returned to the red after a temporary reversal seen yesterday, after the impending uncertainty over Brexit talks, French elections and Trump administration’s policies boosted the safe-haven bids for the metal.
Gold is seen accelerating to southwards amid broad based US dollar strength, as the treasury yields move up in the wake of recent series of upbeat US fundamentals and hawkish Fedspeaks, both advocating tighter pace of monetary policy tightening by the Fed this year.
Markets now shift their focus on the upcoming US GDP, employment claims data and Fed member Kaplan’s speech, as dust settles over the Brexit trigger aftermath.
• GOLD TECHNICAL ANALYSIS – Gold prices paused to digest gains ahead of major resistance in the 1263.87-65.23 area (February 27 high, 50% Fibonacci expansion). A daily close above this threshold sees the next upside barrier at 1281.88, the 61.8% Fib. Alternatively, a turn back below the 38.2% levelat 1248.58 – now recast as support – exposes the 23.6% expansion at 1227.99 anew.
Reference: Reuters, FXStreet, DailyFX
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