(Kitco News)- On Friday, U.S. gold futures rebounded on short covering as traders gone out of positions ahead of a weekend, with the yellow metal if not temporarily, steadying in the aftermath of a severe sell-off the day in advance that was connected to expectation that the Federal Open Market Committee will begin reducing its asset-purchase program later this year.
Overnight news reported strong Chinese buying.
Gold also bounced up through New York trading, even though it was in an equally slight range of roughly $13 during open-outcry hours.
Traders stated that short covering is buying to offset positions in which traders earlier sold. Several were from traders deficient to lock in profits on or after the sell-off.
Chart support for August gold could lie at the overnight low of $1,268.70, whereas resistance could happen at the psychological $1,300 area, then the $1,323 low from mid-April that failed as support.
The market place is under the major shorter-term moving averages, along with the 10-day of $1,362.40 and the 20-day of $1,379.70. The 50-day is at $1,407.30.