Gold prices are trading just below unchanged levels in the early going Friday. The gold and silver markets showed little reaction to some fresh, upbeat Chinese economic data released Friday.
Next week, China will be on holiday for the Lunar New Year. That may be limiting buying interest in the gold and silver markets late this week, because of demand from China slowing during its holiday season.
The U.S. dollar index is weaker early Friday. However, the greenback bulls have had the better week and still have some near-term momentum on their side. The stronger dollar has also been a limiting factor for upside moves in the gold and silver markets this week.
Technically, April gold futures bulls and bears remain on a level near-term technical playing field amid choppy and lackluster trading recently. Prices are presently trading right at the key 200-day moving average, which comes in at $1,670.50 on Friday. The gold bulls' next upside price breakout objective is to produce a close above solid technical resistance at $1,700.00. Bears' next near-term downside breakout price objective is closing prices below solid technical support at last week's low of $1,653.20. First resistance is seen at $1,680.00 and then at this week's high of $1,687.00. First support is seen at this week's low of $1,661.80 and then at $1,653.20.
