Gold consolidating Friday’s strong up-surge to 4-week tops

Gold was seen consolidating Friday's strong gains to 4-week tops and oscillated in a narrow trading range just above $1265 level amid lighter trading volumes. 

Political tensions surrounding the Korean peninsula, following the latest ballistic missile test by North Korea supported the precious metal's safe-haven demand at the start of a new trading week.

The initial up-move, however, lacked conviction as market players seemed convinced that the Fed would eventually move towards raising interest rates at its June meeting, which seems to have kept a lid on any further up-move for the non-yielding metal, at least for the time being. 

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However, a weaker US Dollar was seen lending some support to dollar-denominated commodities - like gold, and a combination of diverging factors has led to a subdued/range-bound price action amid holiday thinned liquidity conditions.

The UK and the US markets would remain closed on Monday in observance of Memorial Day and Spring Bank Holiday, respectively.

Technical levels to watch

Bulls would be eyeing for a momentum beyond $1270 level, above which the metal seems all set to head towards $1275 horizontal resistance en-route its next major hurdle near $1279-80 region. On the downside, $1264-63 region now becomes immediate support to defend, which is closely followed by a horizontal support near $1260 level. Any further weakness below $1260 level now seems to find fresh buying interest near $$1255-54 support area.