Gold prices stabilized in early trading on Friday, still awaiting further positive momentum to settle above the broken trend line on the four-hour timeframe. The yellow metal is currently looking for further positive momentum to resume its main upward trend, heading towards $5215 then $5240. Conversely, if the price falls below the aforesaid trend line, it may test the support levels at $5113 then $5078.

The yellow metal steadied today as a drop in U.S. Treasury yields eased the opportunity cost of holding bullion, while muted safe-haven demand kept prices in check as investors assess U.S-Iran negotiations.

Market Watch

US Treasury yields slip

US Treasury yields fell on Friday as investors awaited the release of annual inflation data in the United States, according to the producer price index due later today, as they reassessed the performance of the U.S. economy and its growth potential in the coming period.

US–Iran talks end without deal

Iran and the United States held hours of indirect negotiations Thursday over Tehran’s nuclear program but walked away without a deal, leaving the danger of another Mideast war on the table as the U.S. has gathered a massive fleet of aircraft and warships in the region.

Oman’s Foreign Minister Badr al-Busaidi, who mediated the talks in Geneva, said there had been “significant progress in the negotiation” without elaborating.

Dollar dips amid slight uptick in U.S. jobless claims

Dollar fell today after the number of Americans filing new applications for jobless benefits increased slightly last week, but the data showed that the unemployment rate appeared to hold steady in February in a stable labor market.

On Thursday, the Labor Department reported that initial unemployment claims for the week ended Feb. 21 stood at 212,000. Though that marked an increase of 4,000 from the prior week’s upwardly revised figure.

Looking Ahead

U.S. inflation data will take center stage, with the annual Producer Price Index projected to ease to 2.9% in January from 3% in December.